August 1, 2018 / 7:56 PM / 15 days ago

UPDATE 1-Chile retailer Falabella says to purchase Linio for $138 mln

(Adds context for financing, information about both companies, detail on IKEA)

By Antonio De la Jara and Dave Sherwood

SANTIAGO, Aug 1 (Reuters) - Chilean retailer Falabella said on Wednesday it had purchased Latin American e-commerce company Linio for $138 million, adding in a regulatory filing that it was seeking $800 million in financing to put toward the acquisition and other investments.

Falabella said it would seek approval from shareholders for the financing as it moves to bolster its online presence and accelerate investments in technology and logistics.

The Santiago-headquartered company said it hoped Linio, an online marketplace that operates in eight Latin American countries, would provide a platform for selling its products.

Falabella said in the regulatory filing that part of the $800 million it hopes to raise would go towards developing its partnership with IKEA AB in Chile, Colombia and Peru.

The Swedish furniture retailer announced in May it planned to open its first stores in South America under a franchise agreement with Falabella.

Falabella’s other operations include department stores, supermarkets, home improvement centers, malls and financial services, operates in Argentina, Brazil, Chile, Colombia, Peru and Uruguay.

Shares in Falabella fell nearly 6 percent following Wednesday’s announcement. (Reporting by Dave Sherwood and Antonio de la Jara; editing by Jonathan Oatis)

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