July 2 (Bloomberg) -- Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s biggest retailer, will invest in its Globex Utilidades SA unit and gain a larger stake under revised terms for the takeover of rival Casas Bahia Comercial Ltda.
The retailer will spend at least 689.8 million reais ($385 million) buying Globex shares for 16 reais each and will own at least 52 percent of the unit following its takeover of Casas Bahia, Sao Paulo-based Pao de Acucar said today in a statement.
The terms of the takeover were revised seven months after the transaction was announced in December. The Klein family, which controls Casas Bahia, will own 47 percent of Globex, compared with 49 percent under the previous agreement. The purchase will make Pao de Acucar Brazil’s biggest home-appliance seller as the company seeks to diversify from food retailing to take advantage of growth in Latin America’s largest economy.
“The association will allow the companies to capture synergies from now on,” the retailer said in the statement.
The revised agreement stipulates that both sides must keep their Globex shares for at least 24 months. The previous accord allowed Bahia to sell some shares after 12 months. Casas Bahia’s real estate assets aren’t included in the transaction and Pao de Acucar will pay 140 million reais a year to rent the stores.
Casas Bahia Chief Financial Officer Michael Klein will be chairman of Globex and its marketing director Raphael Klein will be the company’s chief executive officer.
The companies expect to implement the agreement within 120 days, according to the statement.
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