Brazil Retailer Raises at Least $1 Billion in Share Sale

Lojas Americanas SA, the Brazilian retailer controlled by billionaires Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira, raised $1.5 billion in a share sale, with the trio behind 3G Capital Partners Ltd. adding to an almost 40-year bet.

The firm sold preferred shares at 34.50 reais ($6.51) each and voting stock at 29.78 reais apiece, according to regulatory filings. Lojas Americanas said it sold 243 million shares, including an over-allotment, taking total tally to 7.87 billion reais, according to the filing.

The preferred shares, which are part of Brazil’s benchmark Ibovespa gauge, gained 1% to 35.01 reais shortly after open on Wednesday.

Purchased by Lemann and his partners back in 1982, the retailer was seeking money to invest in on-line systems to better serve consumers stuck at home because of pandemic-related lockdowns. The trio had committed to buying at least 65.7 million voting shares, the filings show, an investment of about 1.95 billion reais.

Part of the proceeds will help embattled e-commerce firm B2W Cia. Digital, in which Lojas Americanas owns a 61.4% stake, to up its game. Lojas Americanas said it may inject as much as 3 billion reais into B2W after its own equity sale, according to the filing, but no decision was made. B2W has struggled to turn a profit and compete with rivals Magazine Luiza SA and Via Varejo SA.

Banks running the equity offering were Banco BTG Pactual SA, Bank of America Corp., Banco Itau BBA SA, Banco Bradesco BBI SA, Banco Santander Brasil SA, Banco Safra SA, Goldman Sachs Group Inc. and Morgan Stanley.

©2020 Bloomberg L.P.

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