The first installment will be in cash and represent 80% of the total amount due, corresponding to €8 million, while the remaining €2 million will be paid by 30 June 2024.
GPA will also receive an equalisation payment if Casino sells its stake in Cnova or reorganises the company within 18 months.
The equalisation payment is calculated based on the difference between the value implicit in the transaction and the value to be attributed to 100% of the capital in a potential subsequent transaction.
The valuation of the business, however, was well below the value of Cnova on the stock exchange. Traded in Paris, the company is worth €517 million on the stock market. The operation between GPA and Casino valued 100% of the company at €29.4 million.
GPA's board of directors approved the deal after receiving a fairness opinion from BTG Pactual. The opinion concluded that the terms of the deal were fair and equitable for all shareholders of the company.
The transaction puts an end to a negotiation that began in September and is part of a restructuring that the Brazilian company has carried out to divest non-core assets and thus reduce leverage, as in the cases of operations involving the Colombian network Éxito and Brazilian cash & carry operation Assaí.
GPA reported a wider net loss in its third quarter, mainly driven by non-cash effects from the Exito spin-off, but a nearly 10% growth in sales.