Brazil's Via Varejo soars on reports of Falabella, Steinhoff interests (updated)

Banco Bradesco

24/11/2016 12:55

(Adds share performance, companies declining to comment) 
    SAO PAULO, Nov 24 (Reuters) - Shares in Brazil appliance 
retailer Via Varejo SA soared on Thursday by the most since 
March on reports that three suitors have expressed interest in a 
controlling stake in the company. 
    SACI Falabella SA  FAL.SN , Steinhoff International Holdings 
Ltd  SHFFp.J  and Lojas Americanas SA  LAME4.SA  are among a 
group of retailers interested in Via Varejo  VVAR3.SA , 
newspaper Valor Econômico reported. 
    Citing people with knowledge of the situation, Valor said 
GPA SA  PCAR4.SA , Via Varejo's controlling shareholder, had 
received a list of potential interested parties from Banco 
Santander Brasil SA, its adviser in the deal. 
    Late on Wednesday, GPA's board authorized management to 
start proceedings to sell the 43.3 percent controlling stake it 
has in Via Varejo. 
    Via Varejo units  VVAR11.SA , a blend of common and 
preferred shares, rose as much as 13.2 percent to 9.35 reais, 
extending gains to 182 percent so far this year. Preferred 
shares in GPA  PCAR4.SA  rose 3 percent, their third straight 
daily gain. 
    Executives and representatives for Santiago-based Falabella 
and Johannesburg-based Steinhoff did not immediately comment. 
Rio de Janeiro-based Lojas Americanas and Via Varejo declined to 
comment.  
    GPA, Brazil's largest diversified retailer, wants to exit 
Via Varejo to focus on food retailing. The company, which owns 
supermarkets under the Pão de Açúcar brand, posted a 
larger-than-expected third-quarter loss, due in part to a sharp 
drop in non-food sales at the group.  
    Brazil's appliance retailing segment has struggled over the 
past two years with the impact of a recession not seen in eight 
decades and a credit crunch, which worsened as unemployment and 
interest rates climbed.  urn:newsml:reuters.com:*:nL1N1D4291 
    France's Casino Guichard Perrichon SA, which in turn 
controls GPA, hired Santander Brasil  SANB11.SA  to advise on 
the Via Varejo deal. The Klein family, holder of a 27.3 percent 
stake, has hired the investment banking unit of Banco Bradesco 
SA  BBDC4.SA  as adviser. 
 
 (Reporting by Tatiana Bautzer; Editing by Guillermo 
Parra-Bernal and Lisa Shumaker) 
 ((tatiana.bautzer@tr.com; Tel: +55-11-5644-7756; Mob: 
+55-119-4210-4173; Reuters Messaging: 
tatiana.bautzer.thomsonreuters.com@reuters.net)) 
 
Keywords: VIA VAREJO M&A/