France-based Casino has announced plans to restructure its Latin American operations. The changes will see it control its Latin America-based business divisions in Argentina, Brazil, Colombia and Uruguay through a 41.5% stake in Brazil-based Grupo Pão de Açúcar (GPA).
GPA to acquire all shares in Éxito
Through an all-cash tender, GPA will acquire all shares of the Colombia-based Éxito. The price offered, which will be examined by an external independent committee, will be between COP16,000 (US$5) to COP18,000 (US$5.6) per share.
Casino said it would tend all its 55.3% stake in Éxito. It will acquire all the controlling shares issued by GPA, currently held by Éxito in holding company Segisor. The cash received from GPA by Casino for its c.55% stake is thought to be similar to the price for Casino to acquire the c.18.8% stake held by Éxito in Segisor.
GPA shares will migrate to Novo Mercado
As part of the overhaul, GPA’s shares will migrate to the Novo Mercado segment of Brazil’s stock exchange with the conversion of preferred shares into ordinary shares.
Proposed transaction expected to bring benefits to GPA
GPA’s Board of Directors believe the proposed transaction will bring benefits to GPA both in terms of simplifying the Latin American structure and significantly improving governance. The Board expects the transaction will considerably increase its base of potential investors.
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