Brazil's Pao de Acucar, Klein family to sell Via Varejo shares

SAO PAULO Mon Nov 25, 2013 8:55am EST

SAO PAULO Nov 25 (Reuters) - Brazil's top retailer Grupo Pao de Acucar and the Klein family, which share ownership of Brazil's largest home appliance retailer Via Varejo , plan to raise as much as 4.9 billion reais ($2.2 billion) through a secondary sale of share units in the company.

Each unit includes one common share and two preferred shares, Via Varejo said in a prospectus published in newspaper Valor Economico on Monday.

The Klein family, led by patriarch Samuel Klein, a Holocaust survivor who founded Brazil's top appliances retailer Casas Bahia in 1952, currently holds a 47 percent stake in Via Varejo. The company was set up as a holding company in 2010 during Casas Bahias' merger with Grupo Pao de Acucar.

The Kleins sent a letter to Pao de Acucar in May disclosing their plan to sell 53.7 million common shares in Via Varejo, a little more than one-third of the shares they hold. The plan to carry out the divestiture through the sale of units was approved by Via Varejo's board in June.

The family and Pao de Acucar will initially offer 107.6 million units at a price of between 25.60 and 33.60 reais. Out of the total, Grupo Pao de Acucar will offer 26.9 million units, according to a securities filing Monday.

The total number of units could be increased by 16.1 million units in a so-called supplemental offering and another 21.5 million units in an additional offering, the prospectus said.

Pricing for the units will take place on Dec. 12, with trading set to begin on Dec. 16.

The investment banking unit of Credit Suisse is leading the deal along with Bradesco BBI and Bank of America Merrill Lynch. Bookrunners include Goldman Sachs , Itaú BBA, JPMorgan Chase, Banco Santander, and UBS .

The units will be traded on the São Paulo Stock Exchange under the symbol "VVAR11."

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