Companhia Brasileira initiates spin-off of cash & carry business

  • Companhia Brasileira de Distribuição (NYSE:CBD) is initiating a study to segregate its cash and carry unit through a partial spin-off of the company and its wholly owned subsidiary Sendas Distribuidora S.A. (Assaí) to unleash the full potential of Assaí, on the one hand, and of the more traditional retail businesses of GPA and Éxito, on the other hand.
  • This will provide each of the businesses with direct access to the capital markets and other sources of funding, hence allowing them to prioritize investments according to each company’s profile, thus creating more value for their respective shareholders.
  • The shares issued by Assaí and held by the company will be distributed to the company’s shareholders on a pro rata basis.
  • Spin-off presentation
  • Shares up 10% premarket.

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