French Retailer Casino to Sell Stake in Exito Group
Deal Reached to Sell Stake in Almacenes Exito
French supermarket chain Casino has announced that it has reached an initial agreement to sell its stake in Latin American retailer Almacenes Exito to Grupo Calleja. The decision comes as Casino continues its restructuring efforts following a period of debt-fueled acquisitions that brought the company to the brink of default.
Approval from Casino’s Board
On Friday, Casino’s board approved a pre-agreement to sell its entire stake in Almacenes Exito to Grupo Calleja, a prominent grocery retailer in El Salvador. Under the deal, Casino will receive $400 million for its stake, while its subsidiary Grupo Pao de Acucar (GPA) will receive $156 million. The payment will be made in cash.
The agreed price of $0.9053 per share may be subject to reduction based on extraordinary dividend distributions, asset transfers, or similar transactions made by Exito. Casino emphasized that the buyer will pay in cash for the stake.
The restructuring efforts by Casino aim to alleviate its indebtedness and enhance its financial stability. The sale of its stake in Almacenes Exito represents a significant step forward in this process. With the agreement in place, Casino can focus on its core operations and future growth opportunities.
By divesting its stake, Casino can redirect its resources and efforts towards strengthening its position in the highly competitive retail market. The company remains committed to delivering value to its customers and shareholders while pursuing its long-term strategic goals.
The deal with Grupo Calleja marks a significant milestone for Casino and its ongoing restructuring efforts. The transaction is expected to be completed in the near future, subject to regulatory approvals and customary closing conditions.
As Casino moves forward with its revitalization plans, it remains dedicated to providing exceptional products and services to its customers. The company’s commitment to innovation and customer satisfaction will continue to drive its success in the retail industry.