SAO PAULO (Reuters) – France’s Carrefour hiked its offer to shareholders of Carrefour Brasil to take the retail giant’s Brazilian unit private, both companies said on Thursday, raising the purchase price by about 10%.
Under the deal Carrefour would pay 8.50 reais ($1.51) per share of the Brazilian unit, up from a previous offer of 7.70 reais. Minority shareholders remain entitled to payment in listed shares of Carrefour, cash or both.
“The new proposal reflects the group’s continued confidence in the long-term prospects of Carrefour Brasil, as well as its commitment to offering an attractive valuation to minority shareholders,” Carrefour said in a statement.
A general meeting from shareholders of Carrefour Brasil to vote on deal was postponed to April 25 from April 7, the Brazilian unit added in the filing.
Carrefour, which owns about 67% of the Brazilian unit, first proposed to buy the remaining shares in February saying this would allow it to manage operations with more agility and improve its execution.
Carrefour Brasil contributes about 20% of the group’s global gross sales.
Shares in Carrefour Brasil closed on Thursday at 7.43 reais each in Sao Paulo. They have been hovering slightly below the previous price proposed by Carrefour.
($1 = 5.6321 reais)
(Reporting by Andre Romani; Editing by Sarah Morland)
