Cencosud reveals details of Wong-inspired share issue

Cencosud yesterday announced the issuing of a set of shares in Santiago de Chile with which to finance the acquisition of Peru's Grupo de Supermercados Wong and to allow the Wongs into the Cencosud set-up. The part of the operation that involves the Wong family mist be wrapped up by January 31, 2008, whilst the part relating to purchasing the Wong operation must be completed by December 31. The shares being issued are those left over from a capital increase carried out by Chile's retail giant in January 2005 (when it bought department-store chain Almacenes Paris). The shares cost US$4 apiece and thus the issue should raise US$580mil. Of the total, 49,750,000 shares will be acquired by the family Wong, the Peruvians thereby taking up a 2.5% stake in Cencosud, the third largest individual stake behind the family Paulmann and the impresario Jorge Galmez. Another 75 million shares will be sold on the Chilean exchange where the latter two plan to acquire a third. Another package of 20 million shares is to be aimed at a compensation plan for Cencosud executives.

Publication: SABI - Business News
Provider: South American Business Information
Date: December 29, 2007