August 8, 2016 / 11:47 PM / 2 years ago

UPDATE 1-Casino's Cnova announces reorganization plan with Via Varejo

(Adds details of proposed reorganization, changes headline)

SAO PAULO, Aug 8 (Reuters) - Cnova N.V. on Monday announced a reorganization plan regarding its operations in Brazil with home appliances retailer Via Varejo, according to a securities filing.

Under the agreement, Cnova will receive some 97 million of its own ordinary shares currently held by Via Varejo and $5 million in cash in exchange for all of its ownership interest in local subsidiary Cnova Brazil.

Casino Guichard-Perrachon, Cnova’s parent company, has also agreed to purchase all of Cnova’s outstanding ordinary shares listed on Nasdaq and on Euronext Paris at a price of $5.50 per share.

Companhia Brasileira de Distribuição, a Cnova minority shareholder, has agreed not to participate in Casino’s tender offer, the filing said.

Cnova, which expects the reorganization to be completed sometime in the fourth quarter, also would receive approximately $157 million for a loan granted by Cnova to Cnova Brazil, the company said in a statement.

Reporting by Ana Mano; Editing by Matthew Lewis and Diane Craft

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below