Asian retailer DFI Retail Group's shares climbed after it said it will sell its Singapore food business to Southeast Asian retail group Macrovalue.

Its Singapore food business includes supermarkets such as Cold Storage, CS Fresh, Jason's Deli and Giant Brands, DFI Retail said Monday.

Shares rose as much as 6.2% to US$2.39, before paring gains to 3.6% in afternoon trade.

The transaction, which has an initial purchase price of 125 million Singapore dollars, equivalent to US$93.6 million, is subject to customary closing conditions and is expected to be completed in the second half of this year.

Given rising food costs and inflation, leveraging scale and operational efficiencies to protect customers from price volatility, while maintaining quality and service standards is essential, said Scott Price, DFI Retail Group's group chief executive.

"We firmly believe that Macrovalue is ideally positioned to drive the next phase of growth for the Singapore Food business with its expanded scale and procurement power across both Malaysia and Singapore," Price added.

DFI Retail Group will turn its focus and resources in Singapore toward its Guardian and 7-Eleven businesses to drive further growth, improve their customers' experience and enhance returns.