September 12, 2017 / 12:05 PM / 10 days ago

Brazil's Magazine Luiza, shareholders plan share offering

SAO PAULO, Sept 12 (Reuters) - Magazine Luiza SA, the Brazilian appliance retailer whose shares have quintupled in value this year, plans an offering of new and existing stock to help finance new investments and acquisitions, especially of technology players.

In a Tuesday securities filing, Magazine Luiza said the offering will total 24 million common shares, of which 17.6 million shares will be placed in a primary offering whose proceeds will go to the company’s coffers. The remaining 6.4 million shares will be sold by controlling shareholders Luiza and Onofre Trajano and another three investors, the filing said.

At current prices, the transaction could help Magazine Luiza and the shareholders fetch 1.88 billion reais ($606 million). The offerings will be in the form of restricted-efforts deal, which differs from standard equity offerings in that a company does not have to request registration of the plan with securities industry watchdog CVM, only qualified investors can participate in such offerings, and the deals cannot be marketed through road shows or the media.

$1 = 3.1026 reais Reporting by Guillermo Parra-Bernal

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