Carrefour Said to Pick Morgan Stanley, SocGen for Carmila IPO

Carrefour SA has picked Morgan Stanley and Societe Generale SA to advise on an initial public offering of its shopping mall property unit Carmila, according to people familiar with the matter.

Carmila could sell shares in Paris next year, though no final decisions have been made, the people said, asking not to be named as the details aren’t public. The unit might be worth 4.5 billion euros ($4.8 billion), Sanford C. Bernstein analyst Bruno Monteyne said earlier this year.

France’s largest retailer reported third-quarter revenue last month that beat analysts’ estimates on stronger-than-expected growth in its home country. Chief Executive Officer Georges Plassat said in July that IPOs of Carrefour’s Brazilian business and Carmila were potentially on the agenda for 2017.

Carrefour is also meeting advisers for the IPO of its Brazilian unit, the people said. Representatives for Morgan Stanley and Societe Generale declined to comment. Carrefour declined to comment.

Carrefour joins a slew of European companies spinning off non-core businesses. RWE AG’s listing of its green energy business Innogy SE raised about $5 billion in Europe’s largest IPO this year. Siemens AG plans to spin off its $15 billion health-care division in one of its biggest portfolio revamps.

Carrefour set up Carmila in 2014 with a group of investors including Axa SA and Colony Capital taking a 58 percent stake. The unit controls more than 185 shopping centers that are attached to Carrefour “hypermarkets” in France, Italy and Spain to make sure they are properly maintained, according to its website.

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE