Carrefour plans full ownership of Brazil unit with $919.5 million offer
Investing.com -- Carrefour (EPA: CARR ), the French grocery giant, said it plans to acquire full ownership of its Brazil unit, known as Atacadao, and delist the business.
The company is offering 5.30 billion Brazilian reais ($919.5 million) for the remaining shares it does not currently own.
Carrefour currently owns 67.4% of Carrefour Brazil and stated on Tuesday that it aims to increase its ownership to 100%.
The decision is attributed to the company's confidence in the growth trajectory of the unit. By taking the business private, Carrefour intends to manage operations with more agility.
The company has put forth a proposal for minority shareholders in Atacadao. Shareholders will be offered either 7.70 reais per share in cash, one Carrefour share for every 11 shares in the Brazilian unit, or a combination of cash and stock.
In the combination option, minority shareholders would receive 3.85 reais per share in cash and one Carrefour share for every 22 shares in Carrefour Brazil.
The board of directors of Carrefour Brazil has unanimously recommended the offer, as stated by the company.
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