Brazil mall operator Aliansce Sonae sweetens offer for tie-up with BR Malls (updated)
14/03/2022 10:52
(Adds details, context, quotes from Aliansce Sonae)
By Gabriel Araujo
SAO PAULO, March 14 (Reuters) - Brazilian shopping mall
operator Aliansce Sonae ALSO3.SA has increased its offer for a
tie-up with rival BR Malls BRML3.SA by 10.9%, it said on
Monday, after having a previous proposal rejected by the latter.
The company said in a securities filing it has decided to
bump a cash payment offer by 500 million reais ($98.53 million)
to 1.85 billion reais and give 51.08% of the combined company to
BR Malls shareholders, from 50% previously.
Aliansce will submit the new offer to a BR Malls
shareholders' meeting, it added, given it already holds a 5.05%
stake in it. urn:newsml:reuters.com:*:nS0N2UP004
The firm said that it is "convinced that the business
combination is a unique opportunity to strengthen both
companies, with significant gains for their shareholders,
customers, and other stakeholders."
"Aliansce Sonae and its financial advisors have been
interacting with BR Malls' shareholders, which, for the most
part, have shown support for the consummation of the intended
transaction."
The company had first submitted an offer in January for what
it called a merger of equals between the firms, but that was
unanimously rejected by BR Malls board. urn:newsml:reuters.com:*:nL1N2TU0S1
Since Aliansce's first offer, BR Malls also revealed talks
with homebuilder Gafisa SA GFSA3.SA and fellow mall operator
Ancar Ivanhoe over possible combinations of assets. urn:newsml:reuters.com:*:nS0N2UI000
urn:newsml:reuters.com:*:nL1N2UK0P9
BR Malls has a market capitalization of 7.5 billion reais,
while Aliansce Sonae has a market capitalization of 5.54 billion
reais, Refinitiv Eikon data showed.
Aliansce is backed by the Canada Pension Plan Investment
Board (CPPIB) fund and also has Alexander Otto's ECE and founder
and chairman Renato Rique as major shareholders. BR Malls, on
the other hand, has a more diffuse ownership.
($1 = 5.0745 reais)
(Reporting by Gabriel Araujo, Editing by Louise Heavens)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))