By Ed Ballard

LONDON--German retail group Metro A.G. (MEO.XE) Tuesday said it plans to sell its 9% stake in U.K. food wholesaler Booker Group PLC (BOK.LN) and reinvest the capital in other parts of its business.

Metro will sell its 156.6 million shares in Booker--worth around $349 million at Tuesday's closing price of 135 pence--via a bookbuild run by J.P. Morgan.

Metro became a shareholder in Wellingborough, Northamptonshire-based Booker in May 2012, when Booker bought its U.K. cash-and-carry business. Booker's shares have risen by around 70% since then.

"Our relationship with [Booker Chief Executive] Charles Wilson and the team at Booker has created significant value over the last two years, in terms of both our shareholding and our strategic partnership," said Metro Chief Executive Olaf Koch.

"We look forward to working with Booker over the years to come as we continue with our strategic partnership," he added.

Write to Ed Ballard at ed.ballard@wsj.com

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