CHILE: Cencosud plans investment in supermarket openings
Cencosud eyes expansion
Chilean retailer Cencosud predicted an increase in revenues this year as it announced plans to invest US$1.28bn in new store openings.
Latin America's third-largest retailer will invest $413m in the opening of 33 new stores and two shopping malls in Chile. It also plans to spend $198m on 26 new stores in Brazil; $119m to open 15 supermarkets and a mall in Peru; $147m to open 27 stores in Argentina and $3m to open a home improvement store in Colombia.
The company emphasised that 86% of its planned investment will be made in the supermarket channel, where it operates a number of banners including the Jumbo and Santa Isabel chains.
Cencosud indicated that it expects this "aggressive expansion plan" to drive revenues. The company predicted that sales would total $18bn in the 12 months to end-February 2013, up from $12.9bn in 2010. The group's fiscal 2011 results are due out next month.
The retailer forecast EBITDA of approximately $1.58bn with an EBITDA margin target of 8.8%.
The announcement comes on the heels of news that Cencosud is mulling issuing American Depositary Receipts to list in the US. At the group's AGM last April, Cencosud shareholders approved a $2bn capital increase and, in a regulatory filing on Thursday, the company said that any potential US listing would be part of this capital increase.
Chilean retailer Cencosud has set the price at which shares in the company will begin trading in New York....
Chilean retailer Cencosud plans to raise up to US$718m in an initial public offering of American depository shares in New York....
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