Billionaire Gilinski Bids $836 Million for Colombia’s Exito

By: Dan Cooper

Published on:

Last Wednesday, June 28

The Colombian banker and businessman Jaime Gilinski presented a binding offer to the Brazilian distribution company GPA for 836 million dollars for the acquisition of 91.52% of the 1,252 million shares that the foreign company has in Success Group.

Rejection of the offer

The request, which would be subject to the approval of the Financial Superintendency of Colombia (SFC) and the Colombian Stock Exchange (BVC), was rejected by the Brazilian executives. “The company’s Board of Directors has met today to analyze and discuss the offer together with its financial and legal advisers, and has decided, unanimously by its members and with the recommendation of its advisers, to reject the offer, considering that the price offered does not reflect adequate parameters of financial reasonableness for a transaction of this nature and, therefore, does not serve the best interests of GPA and its shareholders,” the company said in a statement.

Reason behind rejection

Why did the owners of Grupo Éxito reject Gilinski’s offer? The offer presented by the businessman Colombian, which would be valid until July 7 of this year, is 47% lower than the company’s stock market price, therefore, each title would come out at 2,782 pesos, lower than its market value that, with a TRM of 4,169 pesos would be equivalent to 4,100 pesos for each share. Indeed, according to the newspaper La República, GPA’s shareholders expect an offer of between seven thousand and nine thousand pesos for each title.

Continuation of the sale process

For now, “the process of segregating the businesses of GPA and Éxito is ongoing, according to has been announced to the market”, that is, the sale of Grupo Éxito remains in force while other businessmen join the bid for the acquisition of the sixth largest company in sales in Colombia and the first in the supermarket sector, according to the Superintendence of Companies.

French group Casino’s interest in selling its assets

This sale also takes place after the French group Casino made public its interest in selling its assets in Latin America to increase its liquidity, taking into account that Casino had a consolidated net debt of 7,050 million dollars at the end of last year and, in fact, will have to submit to debt payments that would cost $3.22 billion over the next two years.

Leave a Comment