French retailer Groupe Casino is evaluating an additional sale of a stake of about US$ 600 million (€568.2 million) in Brazilian cash-and-carry banner Assaí.
The value of the transaction may be increased depending on market conditions, according to the group.
The potential transaction would be in the form of a secondary public offering of shares, which may or may not be launched.
Casino has engaged BTG Pactual, Bradesco BBI, Itaú BBA and JPMorgan to examine the terms of the potential transaction.
The offer comes three months after Casino sold a 25% shareholding in Assaí for R$ 2.7 billion (€498 million), reducing its stake to 30.5%.
The divestments are part of Casino’s general debt-cutting plans with the aim of raising about €4.5 billion by the end of 2023, in order to reduce its leverage.
Should a transaction be concluded in the coming weeks, Assaí will propose to the next General Shareholders Assembly, scheduled for April 2023, ‘a new composition of the Board of Directors reflecting the reduction of Casino’s shareholding.’
Assaí is the only Brazilian cash & carry player on that has a place on the country's stock exchange since its listing in March 2021.
The company reported 2022 gross sales of R$ 59.7 billion (€11.0 billion), up 31% year-on-year and 10% LFL, for a net profit of R$ 1.2 billion (€221.5 million).
Last year, the banner opened 60 new stores in the year, of which 47 were conversions and 13 new openings, taking its total to 263 stores in 23 states and the Federal District.
Plans for 2023 include the conclusion of the hypermarket conversion project and continued organic expansion, with around 40 stores in the pipeline.
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