Colombian supermarket giant Almacenes Exito launched a $1.4 billion share sale Monday to finance expansion in the Uruguayan market.
The public offering begins Monday and will end September 23. In a company press release Exito announced 114,270,684 shares are to be sold at a price of $12.29 each subject to approval by the board of directors.
The money raised from the share issue will be used to finance the acquisition of a majority stake in the Uruguayan companies Disco and Devoto for $746 million and to accelerate the company’s national and international growth plans.
Medellin based economist Juan Diego Uribe told Colombia Reports he thinks the stock sale will be successful in acquiring the necessary amount for the international expansion.
He said “It is a company which has a good name, it is a company which has been developing significant national and international growth program. The results have been positive. I don’t see any impediments as to why national and international stock markets would not look favorably at this stocks emission.”