The pricing of secondary offering of shares of Assai 🇧🇷ASAI3) takes place this Tuesday (29), according to the prospectus for the operation released by the company. The French supermarket group, casinois offering in the base lot 140.8 million shares of Assaí, or approximately 10.4% of its share capital.
In addition to the shares, the operation also includes the sale of ADRs 🇧🇷American Depositary Receipts) – stock receipts traded on the United States – in a deal that could reach around BRL 3.66 billion, considering the addition of 49.5 million shares via an additional lot, raising the share sold to 14.1%.
With the offer, Casino, which owns around 41% of Assaí, can keep up to less than 10% in the company, making Assaí a corporation.
THE XP investments judges the transaction as positive, evaluating that the operation can bring an improvement in the liquidity of ASAI3with the free float (shares traded on the handbag) reaching 73%.
The brokerage also mentions that the deal should reduce Casino’s influence on Assaí, “which we hope will be unfolded in new steps to improve the company’s corporate governance”.
XP points out that Assaí has made changes to improve its governance, such as replacing a Casino representative on the board by the current CEO of the company, Belmiro Gomes🇧🇷
In the short term, XP believes that Assaí should move in the direction of becoming a corporation.
The broker sees new replacements taking place on the board of directors until April 23, 2023, when the official board renewal takes place, which would further reduce Casino’s influence.
XP also estimates that, by the end of 2023, Casino will potentially have already sold additional stakes and foresees the introduction of a more robust stock option plan for Assaí’s top executives.
The broker reiterated the recommendation of “purchase” of paper, at the target price of R$ 22, and continues with favoritism in Assaí in the food retail segment.
“We continue to see the company as a solid growth story, with a strong moment of results, better corporate governance, a defensive profile in the face of the volatile macro scenario and valuation interesting”, he adds.
Join Assaí’s follow-on?
Pedro Serra, from Activate Investmentssays the business opens an opportunity to purchase the assets, although they already have a lot of liquidity. The broker has a buy recommendation for ASAI3🇧🇷
According to Serra, the offer is more interesting for large funds. However, an eventual discount on shares also opens up an opportunity for individual investors.
In line with XP, the brokerage’s analysis judges the news as positive and also highlights that governance in the cash and carry company is high. Furthermore, going forward, the offer may result in better allocation of capital to fund higher long-term growth.
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