Carrefour could ditch IPO for up to USD 2.1bn stake sale to investors including Abilio Diniz, Tarpon
Carrefour (EPA: CA), the France-based supermarket operator, is considering a private stake sale of up to BRL 5bn (USD 2.1bn) instead of an IPO for its Brazilian operations, according to a newswire report.
Brazilian entrepreneur Abilio Diniz is partnering with a number of investors to invest in Carrefour, according a person with direct knowledge of the situation.
The person told Reuters that Carrefour, which is also the second largest retail chain in Brazil, sees the search for a private investor as more viable than an IPO at the present time.
Diniz, who left Companhia Brasileira de Distribuicao – CBD (PCAR4: BZ) last year via the sale of a large stake in the company, has allegedly joined forces with Tarpon Investimentos and a sovereign wealth fund which the person declined to name, to invest in Carrefour. Negotiations are at a very advanced stage, according to the person.
A second source said the deal could include a stake sale in Carrefour’s wholesale unit Atacadao.
According to a Portuguese-language version of the Reuters item, the second source said Carrefour could raise at least BRL 4bn (USD 1.6bn) in the transaction.
Source Newswire Round-up