The offer of shares of the wholesale group Assaí by the French group Casino is attracting strong demand from investors.
The reduction in the influence of Casino —which has been suffering from debts over the last few years— in the direction of the Assaí operation, and the prospects for growth of the cash and carry sector in the country in a scenario of high interest rates and inflation also at a still high level, contribute to the demand for papers.
According to two sources accompanying the operation, the demand would be about twice as high as the total size of the offer of BRL 3.5 billion, with the price per share around BRL 18.50, considering the initial lot of 140 million of shares and an additional batch of around 49.5 million.
Assaí’s shares ended the trading session on Monday (28) quoted at R$19.32, and were up close to 1% on Tuesday (29).
The offering schedule foresees for this Tuesday, after market close, the definition of the price per share in the offering, depending on the demand received from investors. On Thursday (1st), the offered shares will be traded on the Stock Exchange.
The operation follows CVM (Securities and Exchange Commission) Instruction 476, and is restricted only to investors considered professionals by market legislation, which are those with more than R$ 10 million in financial investments.
Guide Investimentos analyst Rodrigo Fraga says that the agility of the operation carried out by Casino, with the announcement on the eve and the formation of the price per share on the following day, may be an indication that the French group already had a guaranteed demand from investors interested in paper.
Fraga adds that the positive performance of the shares in the trading session may reflect a good perception of investors regarding Casino’s lesser influence on Assaí’s operations, given the difficulties faced by the indebted French group and the history considered conflicting in relation to controlled companies and investors. .
Casino holds a 41% stake in Assaí, and should sell a slice corresponding to around 14.1% of the total, according to XP estimates.
The group intends to complete a divestment plan of 4.5 billion euros (R$ 24.7 billion) by the end of 2023, and analysts covering the company saw the announcement of the sale of a stake in Assaí as positive, since which follows the sale of a stake in renewable energy company Green Yellow earlier this year.
“We see the transaction as positive”, point out XP analysts in a report. They say that Casino’s lesser influence and Assaí’s improved corporate governance, along with an increase in the company’s share liquidity, contribute to the favorable view of the offer.
“We reiterate Assaí as our preference in the food retail segment”, point out the XP analysts, who have a purchase recommendation for the shares, with a target price of R$ 22 in 12 months.
The positive perspectives for the cash and carry sector, which tends to register an increase in demand in a scenario of high interest rates and inflation that erodes the purchasing power of the population, are also mentioned by the Guide analyst among the reasons that may have contributed to high demand for Assaí shares.
“It is a sector that has surfed very well the macroeconomic environment of high inflation, absorbing customers from other supermarket chains”, says Fraga.
Assaí reported net income of BRL 281 million in the third quarter of 2022. Although the result represented a drop of 47.8% compared to the same period of 2021, it came above the average forecast of analysts consulted by Refinitiv, of BRL 246 million.
With Reuters
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