French supermarket retailer Casino has launched a stake sale in Brazilian cash-and-carry chain Assaí, as part of its general debt-cutting plans.
Casino said it was selling 140.8 million shares in Assaí, representing 10.4% of the company's share capital, and that it could sell a further 3.7% of Assaí later.
Value Of Stake
Based on Assaí's closing share price of 19.21 Brazilian reals (€3.42) on November 25, the sale of 140.8 million shares would be worth 2.7 billion reals (€480 million).
Casino said the Assaí share sale would take the form of a secondary public offering.
'The sale, which was approved by Casino’s Board of Directors, will take the form of a secondary public offering, the allocation of which is expected on 29 November 2022 with an expected settlement date of 2 December 2022, depending on market conditions,' the group said in a statement.
The banking syndicate for the transaction is comprised of Itaú BBA, BTG Pactual, J.P. Morgan, Banco Bradesco, Banco Safra and Santander.
Read More: Casino's Potential Stake Sale In Brazilian Assai 'Saves Some Time'
GreenYellow Sale
Last month, Casino sold its renewable energy business, GreenYellow, to Ardilan, again in keeping with its debt-reduction plans.
According to a statement issued by the retailer, Groupe Casino’s proceeds from the sale – net of the €165 million reinvestment that it made in the business – amount to approximately €600 million.
Casino has retained a 15% stake in the business.
In the second quarter of its financial year, Groupe Casino reported an 8.1% increase in sales, driven by a robust performance in Latin America and an improved performance in France.
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