Mizzi Organisation has reached an agreement to sell its Arkadia supermarket business to a third-party buyer, marking a significant move in the group's ongoing strategy to streamline its operations and focus on its core business activities.

The announcement was made on Tuesday by Mizzi Organisation Finance plc in a company announcement issued to the market.

The transaction involves Arkadia Foodstores Ltd, a subsidiary of Mizzi Organisation Ltd, which operates a number of Arkadia Foodstores outlets across Malta and Gozo.

The company said the sale remains subject to a number of conditions that must be satisfied before the transaction can be completed. It did not disclose the identity of the prospective buyer or the financial value of the deal.

According to the announcement, the disposal is in line with Mizzi Organisation's strategic objective of concentrating its resources on selected business segments with the aim of strengthening the group's long-term value.

The announcement was issued through Mizzi Organisation Finance plc because Mizzi Organisation Ltd is one of the guarantors of the group's €45 million 3.65% unsecured bond issue maturing between 2028 and 2031. As a result, the group is required to inform bondholders and the market of developments that may be considered material.

The company said it will provide further updates should there be any significant developments relating to the transaction.

Arkadia is one of Malta's established supermarket brands, with outlets in both Malta and Gozo, and has been part of the Mizzi Organisation's retail portfolio for several years.