SANTIAGO Nov 19 The controllers of Chilean
diversified retailer Cencosud said late on Monday they will
exercise their preferential option in a planned capital increase
destined for the purchase of French retailer Carrefour's
The Chilean retailer will seek approval on Tuesday of a $1.5
billion capital increase to help pay for the $2.6 billion
acquisition, which would be the biggest purchase by a Chilean
firm abroad to date.
Cencosud also aims to issue $1 billion in bonds on
the U.S. market to help fund the purchase.
"The decision is based on the confidence that the
controlling family has in the company, in the markets it
operates in and the executive team in charge," the controlling
Paulmann family, owners of nearly 62 percent of Cencosud, said
in a statement.
Cencosud, which listed on the New York Stock Exchange
earlier this year, recently acquired Brazilian supermarket chain
Prezunic and Chilean department store Johnson's, and also has
operations in Argentina and Peru.
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
operates in the region.