May 20, 2020 / 2:40 PM / 3 months ago

Brazil's GPA to receive part of former subsidiary Via Varejo $153 million tax award- document

SAO PAULO, May 20 (Reuters) - Brazilian food retailer GPA SA will receive 500 million reais ($87.5 million) of an 874 million-real court tax award to former subsidiary Via Varejo SA, according to securities filings and an internal Via Varejo document seen by Reuters.

Via Varejo, one of Brazil’s largest home appliance retailers, on Wednesday won a lengthy court dispute with Brazilian tax authorities. The original plaintiff in the tax dispute was Globex, one of the companies acquired by GPA that later became Via Varejo.

The 2010 GPA acquisition contract for Globex had spelled out how tax credits would be divided in case the companies received a final and favorable ruling in the tax matter.

Via Varejo will keep 374 million reais of the total tax award, and pay its former controlling shareholder, GPA SA, 500 million reais, corresponding to its tax credit after the acquisition.

GPA, controlled by France’s Casino Guichard Perrachon SA , sold its stake in Via Varejo last June. ($= 5.7142 reais) (Reporting by Tatiana Bautzer; editing by Jonathan Oatis)

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