Brazil's Pao de Acucar, Klein family to sell Via Varejo shares

Reuters

SAO PAULO, Nov 25 (Reuters) - Brazil's top retailer GrupoPao de Acucar and the Klein family, which shareownership of Brazil's largest home appliance retailer Via Varejo, plan to raise as much as 4.9 billion reais ($2.2billion) through a secondary sale of share units in the company.

Each unit includes one common share and two preferredshares, Via Varejo said in a prospectus published in newspaperValor Economico on Monday.

The Klein family, led by patriarch Samuel Klein, a Holocaustsurvivor who founded Brazil's top appliances retailer CasasBahia in 1952, currently holds a 47 percent stake in Via Varejo.The company was set up as a holding company in 2010 during CasasBahias' merger with Grupo Pao de Acucar.

The Kleins sent a letter to Pao de Acucar in May disclosingtheir plan to sell 53.7 million common shares in Via Varejo, alittle more than one-third of the shares they hold. The plan tocarry out the divestiture through the sale of units was approvedby Via Varejo's board in June.

The family and Pao de Acucar will initially offer 107.6million units at a price of between 25.60 and 33.60 reais. Outof the total, Grupo Pao de Acucar will offer 26.9 million units,according to a securities filing Monday.

The total number of units could be increased by 16.1 millionunits in a so-called supplemental offering and another 21.5million units in an additional offering, the prospectus said.

Pricing for the units will take place on Dec. 12, withtrading set to begin on Dec. 16.

The investment banking unit of Credit Suisse isleading the deal along with Bradesco BBI and Bank ofAmerica Merrill Lynch. Bookrunners include Goldman Sachs, Itaú BBA, JPMorgan Chase, BancoSantander, and UBS .

The units will be traded on the São Paulo Stock Exchangeunder the symbol "VVAR11."

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