Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Brazil's Americanas to seek bidders for fruit and vegetable unit

Published 05/18/2023, 09:00 PM
Updated 05/18/2023, 09:06 PM
© Reuters. FILE PHOTO: People walk in front of a Lojas Americanas store in Brasilia, Brazil January 12, 2023. REUTERS/Ueslei Marcelino
C
-
LUNAt/USD
-

SAO PAULO (Reuters) - Brazil retailer Americanas SA said on Thursday it will next week start to seek potential bidders for the acquisition of its Hortifruti Natural da Terra (HNT) business unit.

In a securities filing, Americanas said it has hired Citigroup (NYSE:C) Global Markets Brazil as the financial adviser for conducting the process to sell the unit, which markets fruits and vegetables.

The company added that parties had approached it over potentially purchasing the operations of its financial services arm Ame, but that no decision has been taken so far. Americanas noted, however, it has started "evaluating strategic alternatives for the business, which may involve preliminary contacts with potential interested parties."

Americanas entered bankruptcy protection this year after uncovering roughly $4 billion in "accounting inconsistencies." The firm is struggling to find funds to deal with billions of dollars in debt and be able to leave the bankruptcy restructuring process as soon as this year.

The retailer proposed in late March a recovery plan that considered the sale of some of its assets, a quick fix that could bring additional funding for the troubled company.

© Reuters. FILE PHOTO: People walk in front of a Lojas Americanas store in Brasilia, Brazil January 12, 2023. REUTERS/Ueslei Marcelino

"If Americanas pursues some type of divestment or partnership, it will also organize a market sounding process along the lines of what it has been doing for Grupo Uni. Co and HNT," Americanas said in the filing.

On Monday, the company announced it had hired Citi Bank as a financial adviser to conduct the sale process of Grupo Uni.co, a gift shop group that holds over 190 stores, e-commerce platforms, covering more than 600 brands.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.