Casino's Brazil Unit Agrees to Sell Via Varejo Stake
12 Junio 2019 - 10:49AM
Noticias Dow Jones
By Anthony Shevlin
Casino Guichard-Perrachon SA's (CO.FR) Brazilian subsidiary
Companhia Brasileira de Distribuicao Grupo Pao de Acucar (PCAR4.BR)
said Wednesday that it approved the sale of its stake in
electronics retailer Via Varejo SA (VVAR3.BR).
Grupo Pao de Acucar, which has a network of over 1,100 stores in
Brazil, said it would accept a minimum price of 4.75 Brazilian
reais per share for its 36.27% stake in Via Varejo.
The company said it received a letter from Michael Klein--whose
family owns a 25.43% stake in Via Varejo--saying he would submit
individually, or with other investors, one or more purchase orders
for Pao de Acucar's shareholding for a maximum price of
BRL4.75.
Pao de Acucar said it would keep the market and shareholders
informed of any new information related to the sale.
Last year, Raymond James analysts said Casino's activity in
Brazil had been detrimental to investor perception.
"We believe that corporate action might be among the much-needed
short-term catalysts to reassure investors," Raymond James said,
and highlighted the long-expected disposal of Via Varejo in Brazil
as a potential action.
The French retailer is currently in the midst of an
asset-disposal program. Bryan Garnier analysts said the sale of Via
Varejo remained a major catalyst to ease market concerns.
Casino has been also been beset by a string of bad news in
recent months, including rating downgrades by Standard & Poor's
and Moody's.
Last month, its shares were halted following a sharp fall after
shares in its parent company, Rallye SA (RAL.FR), were suspended
from the Euronext Paris exchange.
HSBC analysts say both the shrinking of Casino's business and
its margin-maximization strategy could undermine the French group's
long-term strategic position
Write to Anthony Shevlin at anthony.shevlin@dowjones.com;
@anthony_shevlin
(END) Dow Jones Newswires
June 12, 2019 11:34 ET (15:34 GMT)
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