Casino to Simplify Structure of Latin America Operations
June 27 2019 - 1:54AM
Dow Jones News
By Anthony Shevlin
Casino Guichard-Perrachon SA (CO.FR) said Thursday that it plans
to simplify the structure of its operations in Latin America.
The French retailer said the board of directors of its Brazilian
subsidiary Companhia Brasileira de Distribuicao Grupo Pao de Acucar
(PCAR4.BR) approved the formation of an ad-hoc committee of
independent directors that will work on a review involving an
all-cash tender offer launch by GPA on all of Exito's shares, to
which Casino would tender its 55.3% stake.
Casino would acquire the shares held by Exito in Segisor, which
itself holds 99.9% of the voting rights and 37.3% of the economic
rights of GPA.
Furthermore, the review would involve the migration of GPA
shares to the Novo Mercado B3 listing segment. The preferred shares
would be converted into ordinary shares at a 1:1 ratio, Casino
said.
This will end the existence of two classes of shares and give
GPA access to an extended base of international investors, the
company said.
"The tender offer share price offered by GPA and the acquisition
price by Casino of the shares held by Exito in Segisor would both
include premiums over their current share prices," the French
retailer said.
Once finalized, Casino would solely own 41.4% of GPA, which
would itself control Exito and its subsidiaries in Uruguay and
Argentina.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com;
@anthony_shevlin
(END) Dow Jones Newswires
June 27, 2019 01:39 ET (05:39 GMT)
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