SAO PAULO/PARIS (Reuters) -French grocer Carrefour SA sent to its management a proposal to take its Brazilian unit Atacadao SA, known as Carrefour Brasil, private, the Brazilian company said in a securities filling on Tuesday.
Under the proposal, Carrefour Brasil’s shareholders could chose to receive shares, cash or both for its shares, according to the filing.
Shares in Carrefour Brasil rose around 15% after the report, the biggest gainer on Brazil’s benchmark stock index Bovespa, which was up 0.7%.
Carrefour Brasil shareholders would be able to receive 7.70 reais ($1.33) per share if they choose to leave the group, according to the proposal.
Other options mentioned in the filling are receiving a fixed 3.85 reais plus about 0.045 of a Carrefour share for each Carrefour Brasil share; or an all-share payment of about 0.09 Carrefour shares.
“We are convinced that this decision represents an excellent opportunity for the group’s capital allocation and will generate sustainable value for our customers, employees, partners and shareholders,” Carrefour said in a separate statement.
($1 = 5.7686 reais)
(Reporting by Andre Romani in Sao Paulo and GV De Clercq in Paris; Writing by Isabel Teles; Editing by Chris Reese and Aida Pelaez-Fernandez)
