Grupo Gigante SAB, the company that runs retailers and restaurants, is planning an initial public offering of its Office Depot stores in Mexico’s first equity deal of the year after a record 2013.
Gigante plans to use the proceeds to help pay off loans it used last year to buy the 50 percent it didn’t already own of Office Depot de Mexico SAB from joint-venture partner Office Depot Inc., according to a regulatory filing today with the Mexican stock exchange.
Gigante paid 8.78 billion pesos ($674 million), fully financing the expense with the loans. It already raised $350 million in September from the sale of bonds as part of the payback strategy.
Units of Banco Bilbao Vizcaya Argentaria SA and Credit Suisse Group AG, which managed the acquisition financing, are handling the offering, according to a separate prospectus also filed today with the stock exchange.
Mexican companies sold a record $12.3 billion of shares last year amid speculation that a constitutional overhaul to open the energy industry will spur economic growth.