Nutresa Advances After Ruling Out New Share Sale: Bogota MoverChristine Jenkins
Grupo Nutresa SA rallied after Chief Executive Officer Carlos Enrique Piedrahita said the company will use cash and debt to pay for its $758 million acquisition of Chile’s Tresmontes Lucchetti SA.
The shares gained 2.9 percent to 25,720 pesos at 11:57 a.m. in Bogota. It was the second-best performer on the Colcap Index, which increased 0.5 percent.
The Medellin-based maker of Zenu cold cuts and Jet chocolates said yesterday that it will buy Santiago-based Tresmontes Lucchetti to acquire nine production plants in Chile and a distribution network in Mexico. The deal is scheduled to close by October, according to a filing yesterday.
“We have cash, and we’ll be taking on bank debt, and it will be basically from those two sources,” Piedrahita said in an interview broadcast by Colombian station Blu Radio today. Piedrahita said the company had $150 million in cash and was counting on existing credit lines to finance the rest of the acquisition.
Nutresa posted its biggest drop in four months in March on speculation it would sell preferred shares. Nutresa said in a filing at the time that it didn’t have plans to issue equity in the “foreseeable future.”