Shareholders of Carrefour Brasil have approved a proposal by its parent company, French retail giant Carrefour, to take the Brazilian unit private. The approval, announced through a securities filing on Friday, follows a cash offer of 8.50 reais ($1.50) per share that Carrefour does not already own in Carrefour Brasil. Alexandre Bompard, CEO of Carrefour Group, highlighted that acquiring full ownership of Carrefour Brasil will provide greater operational agility, helping the company to enhance sustainable and profitable growth in Brazil, one of its most dynamic markets.
In addition to the all-cash offer, Carrefour Brasil’s shareholders were given the option to receive Carrefour shares or a combination of shares and cash, providing flexibility in the transaction. Carrefour Brasil, known for its range of retail formats including Carrefour supermarkets, Atacadao wholesale stores, and Sam’s Club locations, contributes roughly 20% of the parent company’s total sales.
The French retailer, which already holds a 67% stake in Carrefour Brasil, initially proposed the delisting in February. After a series of discussions and evaluations, Carrefour raised the offer by about 10% in early April to make it more appealing to shareholders. Reports from Valor Economico indicate that 59% of Carrefour Brasil’s shareholders voted in favor of the proposal during the meeting on Friday.
Carrefour plans to complete the transaction by mid-June, with Carrefour Brasil’s last trading day on the Brazilian stock exchange scheduled for May 30. The deal marks a significant step for Carrefour as it seeks to streamline operations and further consolidate its position in the rapidly growing Brazilian market. Despite the announcement, Carrefour Brasil’s stock saw a slight dip of 0.2%, closing at 8.64 reais per share, while Brazil’s main stock index, the Bovespa, closed up 0.1%.
The privatization of Carrefour Brasil is seen as a strategic move that will enable Carrefour to drive growth and efficiency in the competitive Brazilian retail landscape. With full control, Carrefour expects to better align its business strategies and improve the overall performance of its operations in the country.
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