Cencosud Share Sale Plans Said to Be Limited to Increase Approved in April

Cencosud SA (CENCOSUD), Chile’s biggest retailer by sales, has no plans to sell new stock beyond the amount approved by shareholders last year, said a person with direct knowledge of the matter.

A final decision on the timing and amount of the sale hasn’t been made after shareholders approved in April the sale of as many as 270 million new shares over three years, said the person, who declined to be identified because the board’s decision is pending.

Cencosud fell 3.3 percent to 2,931.6 pesos in Santiago yesterday, the steepest decline since Nov. 17, after La Tercera reported that the company already decided to raise $1.5 billion in a separate transaction to the one approved last year. At yesterday’s closing price, the 270 million shares would fetch $1.66 billion.

Once the board decides to proceed with the share sale it would need shareholders’ authorization to set the amount of shares and the sale price. A Cencosud public relations representative declined to comment on the plans.

To contact the reporter on this story: James Attwood in Santiago at jattwood@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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