According to people familiar with the matter, Casino Guichard-Perrachon sold part of its stake in Sendas Distribuidora to raise over 500 million dollars.
The French grocer sold 140.8 million shares of Assai in a public equity offering at 19 reais per share, according to people asking not to be named as the information isn't public yet. The discount is about 2% from Tuesday's close.
The people said that an additional share wasn't sold. Concerns over the retailer's debt load caused its shares to plunge to an all-time low.
The casino and Assai didn't reply to emails looking for comment.
A number of banks were involved in the deal.
The casino is going to record as a result of the S&P ratings cuts.
Some Assai investors fear that there will be more stake sales, but analysts from Citigroup Inc. to Goldman Sachs Group Inc. see room for the firm to improve its governance perception. Five of Assai's board seats are currently held by Casino.
Goldman analysts led by Irma Sgarz wrote a note this week affirming a buy rating for the stock, saying that the management was clear that there would be a higher proportion of independent board members.
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