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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
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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.

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