Casino investigates R$2.6 billion follow-up to Assaí

Casino said it has begun studies to sell part of its stake in Assaí for around $500 million (2.6 billion reais at the current exchange rate) – a value that could increase depending on conditions. of the market.

The French group, which also owns Grupo Pão de Açúcar, has commissioned BTG Pactual, Itaú BBA and JP Morgan to review the terms of the transaction and search for potential buyers.

The company said no decision has yet been made, but the sale will be through a follow on “and could be completed by the end of November.”

Casino owns 41% of Assaí and would only sell part of its stake.

Last week, the market was already speculating on a sale of the position after the credit default swaps de Casino exploded – which suggests a deterioration in the risk of the company.

As a result, the market began to bet that the Casino’s controller, Jean-Charles Naouri, would have to sell assets. The two most obvious options would be Assaí and Monoprix, the French convenience network.

the potential follow on comes after Assaí announced a third quarter with growth in almost all lines, and analysts expect that momentum accelerate in 2023 due to the conversions of Extra stores.

Depending on post-election market conditions, the follow on could become one of the best deals of the year. Some investors believe Assaí’s natural path is to become a real societywith dispersed capital and under CEO Belmiro Gomes – a similar journey to Lojas Renner after leaving JC Penney, when CEO José Galló began an era that multiplied the company’s size and value many times over .

Leave a Comment