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Parque Arauco Slumps in Chile After Disclosing Share Sale
Parque Arauco SA (PARAUCO), Chile’s third-biggest shopping mall operator, fell the most on the country’s benchmark index after announcing plans to sell new shares equivalent to 16 percent of its market value.
The shares retreated 4.9 percent to 995 pesos at 1:12 p.m. in Santiago, the most in three months on a closing basis. The benchmark IPSA dropped 0.4 percent.
The Santiago-based mall operator, which also has operations in Peru and Colombia, said yesterday in a regulatory filing that it called a shareholder meeting for Oct. 23 to vote on the sale of 115 billion pesos ($228 million) of new shares. The company didn’t disclose its plans for the funds or if the controlling Said family would buy shares in the offering.
“We can’t rule out downward pressure on the stock,” Banco de Credito e Inversiones (BCI) said in an e-mailed research note to customers. “The company hasn’t announced what it plans to do with the money.”
The company said in an August presentation that it planned to invest $222 million in the next 18 months to expand or build seven malls in Chile and four in Peru, adding 113,200 square meters (1.2 million square feet) of area that can be leased to its current 635,000 square meters.
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