Península is negotiating the sale of its 7.3% stake in Carrefour Brasil, valued at R$992.8 million. They might prefer a block trade amidst discussions with banks. Península also holds a significant stake in the parent company in France, which may influence their selling strategy. The decision will depend on market conditions and ongoing performance analytics.
Península, the investment arm of the Diniz family, is negotiating the sale of its 7.3% stake in Carrefour Brasil, currently valued at R$992.8 million based on the retailer’s market capitalization of R$13.6 billion. They are in talks with banks but have not chosen a lead advisor. A block trade, selling the entire stake in one transaction, is favored due to position size and the stock’s liquidity.
Península also holds an 8.83% stake in Carrefour’s Paris-listed group, worth about €812.4 million, amidst a declining share price of 17.4% over the past year. Given the higher liquidity of the European stock, Península may focus on selling its stake in Carrefour France first, depending on market conditions.
Abilio Diniz acquired his stake in Carrefour in 2014 amid a dispute over GPA with Casino’s Jean-Charles Naouri. He sought to negotiate GPA’s terms and suggested merging Carrefour with Pão de Açúcar, though efforts did not materialize. In 2018, Península reduced its Carrefour Brasil shares from 11.46% to 8.91% through an R$805 million block trade.
Carrefour Brasil’s recent market valuation stands at R$13.5 billion, with a year-over-year stock drop of 41.72%, yet an 18.04% rise year-to-date. Analyst insights suggest that Península’s anticipated sale might depress the current share price further, with estimates indicating it represents about nine days of trading volume.
Currently, Carrefour Brasil trades at a P/E ratio of 7 times projected 2025 earnings. J.P. Morgan has a neutral stance on the stock, placing a target price of R$11.50, which reflects an 85% upside from the current R$6.23. For Q3 2024, the company reported net income of R$221 million, a 67.4% increase year-over-year, benefitted by cost savings and synergy achievements.
Operational improvements, particularly at Atacadão, include expanding B2C offerings and enhancing in-store services. When approached for comment, Península stated it does not discuss market rumors. The original article was first reported in Portuguese on Valor’s Pipeline business news site.
Península is the investment vehicle for the Diniz family, which has a notable stake in the Brazilian retail market through Carrefour Brasil and Carrefour’s parent company in France. Their investment activities have historically involved significant transactions influenced by market conditions and liquidity. The strategic decision to sell their stake aims to leverage current market dynamics and respond to the shifting valuation of Carrefour Brasil amidst related financial performance metrics.
In summary, Península is in the process of divesting its stake in Carrefour Brasil amidst fluctuating market conditions. The proposed block trade reflects strategic financial planning, particularly as analysts indicate potential impacts on share prices due to the sale. The Diniz family’s historical involvement with Carrefour further underscores the significance of this transaction in relation to both Brazilian and European retail markets.
Original Source: valorinternational.globo.com
