RIO DE JANEIRO A minority partner of Via Varejo, Brazil's largest home appliance retailer, plans to sell as much as 2 billion reais ($988 million) worth of its stake in a public offering, newspaper Valor Economico reported on Monday.
The Klein family currently holds a 47 percent stake in Via Varejo (VVAR3.SA), a holding company created in 2010 during a merger with Grupo Pao de Acucar (PCAR4.SA), the country's biggest retailer.
The family sent a letter to Pao de Acucar on Friday informing the company of its plan to sell 53.8 million common shares in Via Varejo, a little more than one-third of the shares it holds, Valor said, citing sources close to the family.
A spokesman for Grupo Pao de Acucar declined to comment on the report. Representatives for Via Varejo and the Klein family were not immediately available to comment.
The market value of Via Varejo, which controls appliance and home furnishing chains Casas Bahia and Ponto Frio, is between 10 billion and 12 billion reais, according to analyses by Goldman Sachs, Bradesco and BTG Pactual requested by the Klein family.
At that price, each share of Via Varejo could be worth between 31 reais and 37.18 reais. The shares, which are rarely traded due to its very small float, closed on May 7 at 23 reais.
(Reporting by Walter Brandimarte; Editing by Jeffrey Benkoe)