Casino's Brazil Unit Agrees to Sell Via Varejo Stake

Date : 06/12/2019 @ 4:49PM
Source : Dow Jones News
Stock : Viavarejo ON (VVAR3)
Quote : 7.79  -0.02 (-0.26%) @ 3:31AM
Viavarejo ON share price Chart

Casino's Brazil Unit Agrees to Sell Via Varejo Stake

Casino Guichard Perrachon (EU:CO)
Historical Stock Chart

6 Months : From Apr 2019 to Oct 2019

Click Here for more Casino Guichard Perrachon Charts.
   By Anthony Shevlin 
 

Casino Guichard-Perrachon SA's (CO.FR) Brazilian subsidiary Companhia Brasileira de Distribuicao Grupo Pao de Acucar (PCAR4.BR) said Wednesday that it approved the sale of its stake in electronics retailer Via Varejo SA (VVAR3.BR).

Grupo Pao de Acucar, which has a network of over 1,100 stores in Brazil, said it would accept a minimum price of 4.75 Brazilian reais per share for its 36.27% stake in Via Varejo.

The company said it received a letter from Michael Klein--whose family owns a 25.43% stake in Via Varejo--saying he would submit individually, or with other investors, one or more purchase orders for Pao de Acucar's shareholding for a maximum price of BRL4.75.

Pao de Acucar said it would keep the market and shareholders informed of any new information related to the sale.

Last year, Raymond James analysts said Casino's activity in Brazil had been detrimental to investor perception.

"We believe that corporate action might be among the much-needed short-term catalysts to reassure investors," Raymond James said, and highlighted the long-expected disposal of Via Varejo in Brazil as a potential action.

The French retailer is currently in the midst of an asset-disposal program. Bryan Garnier analysts said the sale of Via Varejo remained a major catalyst to ease market concerns.

Casino has been also been beset by a string of bad news in recent months, including rating downgrades by Standard & Poor's and Moody's.

Last month, its shares were halted following a sharp fall after shares in its parent company, Rallye SA (RAL.FR), were suspended from the Euronext Paris exchange.

HSBC analysts say both the shrinking of Casino's business and its margin-maximization strategy could undermine the French group's long-term strategic position

 

Write to Anthony Shevlin at anthony.shevlin@dowjones.com; @anthony_shevlin

 

(END) Dow Jones Newswires

June 12, 2019 11:34 ET (15:34 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:us D:20191023 07:22:46