• Cencosud raising funds for expansion
  • Plans to spend US$1.28bn this year on new stores 

Chilean retailer Cencosud has set the price at which shares in the company will begin trading in New York.

The company is offering a mix of shares and American Depository Shares as it looks to raise funds for expansion, to pay down debt and buy the remainder of its subsidiary Jumbo Retail Argentina.

Over 45.5m shares are being offered at CLP2,600 (US$5.19) per share. Almost 45.8m ADSs, which equate to three shares of common stock, are being offered at US$15.61 and will being trading today (22 June).

In February, Cencosud said it would spend around $1.28bn on opening new stores this year. The company is Latin America's third-largest retailer and plans to open outlets in Chile, Brazil, Peru, Argentina and Colombia.

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June 21, 2012 11:39 PM Eastern Daylight Time 

Cencosud S.A. Announces Pricing of Public Offering

NEW YORK--(BUSINESS WIRE)--Cencosud S.A. announced today the pricing of its public offering of 91,304,348 shares of common stock in the form of shares or American Depositary Shares ("ADSs"). Of the 91,304,348 shares of common stock being offered, 45,797,349 are being offered in the form of ADSs, each representing three shares of common stock, (equivalent to 15,265,783 ADSs) at a price to the public of US$15.61 per ADS and 45,506,999 are being offered in the form of shares at a price to the public of Ch$2,600 per share. The ADSs are scheduled to begin trading on the New York Stock Exchange on June 22, 2012, initially under the symbol "CNCO.T" prior to the completion of the preemptive rights offering described in the final prospectus, and “CNCO” following the completion of such preemptive rights offering. Cencosud has granted the underwriters the option to purchase up to an additional 13,695,652 shares in the form of ADSs at the public offering price less the underwriting discount.

J.P. Morgan Securities LLC and UBS Securities LLC are acting as global coordinators and joint bookrunners for the offering. Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Banco Bilbao Vizcaya Argentaria, S.A. and Santander Investment Securities Inc. are acting as joint bookrunners.

A registration statement relating to this offering was declared effective by the Securities and Exchange Commission today. Any offer or sale will be made solely by means of a written prospectus forming part of the effective registration statement. Copies of the final prospectus relating to the offering may be obtained from: (a) J.P. Morgan Securities LLC by calling +1-888-803-9204; (b) UBS Securities LLC at the Prospectus Department, 299 Park Avenue, New York, New York 10171, or by calling +1-888-827-7275; (c) Morgan Stanley & Co. LLC at the Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, or by calling +1-866-718-1649; (d) Credit Suisse Securities (USA) LLC at the Prospectus Department, One Madison Avenue, New York, New York 10010, or by calling +1-800-221-1037; or (e) Santander Investment Securities Inc. by calling +1-212-583-4629.

Banco Bilbao Vizcaya Argentaria, S.A., one of the international underwriters, is not a broker-dealer registered with the SEC. Banco Bilbao Vizcaya Argentaria, S.A. will not sell ADSs in the United States, or to nationals or residents of the United States.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

 

Original source: Cencosud