French supermarket chain Casino said it has agreed an initial deal to sell its stake in Latin American retailer Almacenes Éxito to Grupo Calleja.
Casino's board on Friday approved a pre-agreement to sell its entire stake in Almacenes Éxito to Grupo Calleja, a leading grocery retailer in El Salvador, it said.
Casino is in the midst of a restructuring after years of debt-fuelled acquisitions had brought it to the verge of default.
It said on Monday it will receive $400 million from the sale of its stake in Almacenes Éxito, at a price of $0.9053 per share, while its unit Grupo Pao de Acucar (GPA, which also has a stake, will receive $156 million.
The buyer will pay in cash, Casino said.
The price per share may be reduced by extraordinary dividend distributions, asset transfers or similar transactions made by Exito, Casino added in a statement.
About Grupo Calleja
Grupo Calleja is the primary food retailer in El Salvador, operating as Super Selectos. It manages 110 stores and holds a substantial market share of approximately 60%, making it one of El Salvador's major companies. Super Selectos employs over 12,000 individuals.
While retail remains its core focus, the 70-year-old group also has investments in real estate, technology, energy, and other sectors.
Earlier this month, Casino successfully concluded a binding lock-up agreement aimed at restructuring its debt. The agreement was forged in collaboration with a consortium spearheaded by Czech billionaire Daniel Kretinsky's company, EPGC.
This consortium also includes Groupe Casino's most significant creditor, Attestor, and its second-largest shareholder, Fimalac, in addition to secured creditors.
Additional reporting by ESM