Cencosud shareholders approve plan to list on U.S. stock market as part of an up to US$2B planned capital increase to fund Latin American expansion; Cencosud to issue 270 million new shares in 2012

Cindy Allen

LOS ANGELES , March 1, 2012 (Industry Intelligence) – On March 1, shareholders for Cencosud SA approved the company’s plan to list on U.S. stock market as part of an up to US$2 billion planned capital increase, Dow Jones Newswires reported March 1.

The capital increase is intended to fund the company’s expansions plans in Latin America.

Later this year, Cencosud plans to issue 270 million new shares, some of which will be retained in stock option compensation packages that will be provided to company executives.

The shares could be issued in the U.S., locally, or in both locations.

During a company shareholders meeting, Cencosud President and controlling shareholder Horst Paulmann said that issuing American depositary receipts would broaden the financing base of the company.

Cencosud's board of directors have 120 days following the March 1 shareholders’ approval to set a price for the issue.

The company’s current market price runs at 3,150.00 pesos (US$6.54) a share. At this price, Cencosud stands to raise roughly $1.5 billion via issuing the new shares.

Over the next two years, Cencosud plans to invest $2.3 billion and, during 2012, Cencosud announced that it plans to spend $1.3 billion on opening new stores in Latin America.

During 2012, Cencosud expects to generate roughly US$18 billion in revenue.

The primary source of this article is Dow Jones Newswires, New York, New York, on March 1, 2012.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.