Cencosud to Operate Financial Services Business in Chile through Banco Paris
-- Board of Directors approves incorporation of special purpose vehicle as
subsidiary of Banco Paris following end of discussions with Itau Unibanco
-- Financial Services business in Argentina will continue to operate under the
SANTIAGO, Chile, Dec. 23, 2013
SANTIAGO, Chile, Dec. 23, 2013 /PRNewswire/ --Cencosud (NYSE: CNCO, BCS:
CENCOSUD) announced today that its Board of Directors has approved the use of
a special purpose vehicle (SPV) under the auspices of Banco Paris (Chile) to
manage the Company's Financial Services business in Chile.
The Company expects that the use of the SPV will yield meaningful synergies in
the cost of funding for its financial services business in Chile.
Chile's Superintendencia de Bancos (SBIF) approved the creation of an SPV in
TERMINATION OF AGREEMENT WITH ITAU UNIBANCO
The decision to implement this new business model was reached as negotiations
with Itau Unibanco Holding S.A. reached a standstill. In June 2013, Cencosud
and Itau signed an MOU to jointly run Cencosud's financial services business
in Argentina and Chile, with a six-month exclusivity period for the completion
of contract negotiations.
The due diligence process was completed in August 2013. In September 2013 the
parties agreed to an extension of the original 90-day-period for the contract
negotiations, with the intent to close the transaction within the following 30
days. As final contracts were not completed during the agreed-upon period, the
MOU was terminated.
Cencosud is a leading multi-brand retailer in South America, headquartered in
Chile and with operations in Chile, Brazil, Argentina, Peru and Colombia. The
company, founded by Chairman Horst Paulmann, operates in supermarkets, home
improvement stores, shopping centers and department stores, always aiming to
deliver the right product at the right price to Latin America's growing middle
Marisol Fernandez Natalia Nacif Ignacio Reyes
IR Manager IR Analyst IR Analyst
Phone +562-2959-0545 +562-2959-0368 +562-2959-0804
SOURCE Cencosud S.A.
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