* Capital destined for purchase of Carrefour in Colombia
* Controlling family to exercise preferential option
* Cencosud reports 24.3 pct jump in Q3 net profit y/y
* Shares rise more than 3 percent in morning trade
SANTIAGO, Nov 20 Chilean retailer Cencosud's
shareholders on Tuesday approved a $1.5 billion capital
increase destined for the purchase of French retailer
Carrefour's Colombian assets.
Cencosud , which listed on the New York
Stock Exchange in June, had said it aimed to issue part of the
capital increase via American Depositary Receipts, or ADRs.
Chairman Horst Paulmann, head of the Chilean billionaire
Paulmann family, told shareholders on Tuesday that the family
will exercise their preferential option to subscribe to the
capital increase. The family owns about 62 percent of Cencosud.
The capital increase is scheduled for late December and
Cencosud also plans to issue around $1 billion in bonds on
the U.S. market next week to help fund the $2.6 billion
acquisition in Colombia, which will be the biggest purchase by a
Chilean firm abroad to date.
The Carrefour deal will give Cencosud 72
hypermarkets, which combine grocery and department stores; 16
convenience stores; and 4 cash-and-carry stores in Colombia,
adding to the some 900 stores and 26 commercial centers it
already operates in Argentina, Brazil, Chile, Colombia and Peru.
With its expanded business, Cencosud expects sales of around
$24 billion next year, Paulmann said. The Chilean company had
forecast sales of around $18 billion this year.
Earlier on Tuesday, Cencosud reported that its third-quarter
net profit jumped 24.3 percent on the year to 66.499 billion
pesos ($141.3 million), while revenue rose 18 percent to 2.202
Cencosud said the revenue increase was due chiefly to the
consolidation of Brazilian supermarket chain Prezunic and
Chilean department store chain Johnson's, double-digit gains in
same-store sales in Argentina and the opening of 76 new stores.
The retailer's bottom line also benefited from the first
full quarter of operation of South America's largest mall,
Chile's Costanera Center.
In morning trade, Cencosud's shares rose 3.09 percent, while
the blue-chip IPSA index was flat.