Groupe Casino has said that its Companhia Brasileira de Distribuição (GPA) subsidiary in Brazil is undertaking a study to explore the potential spin-off of its profitable Assaí cash and cary unit.
In a statement, Casino said that the goal of the potential spin-off would be to 'unleash the full potential of Assaí, on the one hand, and of the more traditional retail businesses of GPA and Éxito, on the other hand'.
It would enable each of the businesses to operate on a standalone basis, and focus on their respective business models and market opportunities, the retailer added.
Also, if separated, each would have direct access to capital markets and other sources of funding, potentially creating more value for shareholders.
New Structure
If the Assaí business is spun out of the rest of the organisation, Casino would hold a 41.3% stake in GPA and an identical stake in the new entity Sendas Distribuidora S.A. (Assaí).
The spin-off would require approval from shareholders as well as meeting all regulatory and competition guidelines.
According to GPA, Assaí has an 'undisputed track record in the high growth Cash & Carry segment in Brazil, with further opportunities to expand in Brazil
into new and existing geographies', as well as 'solid and sustainable cash generation'.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
