French retail group Casino has signed an agreement to sell a majority share of its Venezuelan unit Cativen to the country’s government for US$690m.
The Venezuelan government will acquire 80.1% of Cativen, Casino said today (26 November). As a result, the shareholders of Cativen will dispose of their entire shareholding, while Casino will retain a 19.9% share in the company, which it said will allow the company to “continue providing operational support to and develop cooperation with the new state-controlled entity”.
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Casino will receive a total consideration of $622.5m related to the sale of Cativen and to the recovery of around $265m of outstanding intercompany loans.
The retailer will receive 60% of the total payment on the closure of the deal – 20% in cash and 40% in two US dollar-denominated promissory notes to mature on 30 November and 30 November next year respectively.
The remaining 40% will be paid in cash following a payment schedule that extends until February.
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“The Casino Group looks forward to continue serving the consumer needs of the Venezuelan people through this newly formed alliance with the Bolivarian Republic of Venezuela,” Casino said.
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