November 28, 2016 / 4:45 PM / 3 years ago

GPA says sale of Via Varejo stake is only option on table

SAO PAULO (Reuters) - Brazilian retailer GPA SA (PCAR4.SA) insisted on Monday that a sale of its controlling stake in Via Varejo SA VVAR11.SA is its only strategic option, disputing comments by a Via Varejo executive who said other alternatives are available.

Earlier on Monday, Via Varejo’s head of investor relations, Alexandre Gonçalves, told investors at a briefing that GPA viewed the stake sale as its best option, but that GPA had alternatives if the deal fell through. He declined to elaborate.

GPA said in a statement to Reuters that management was authorized to sell its Via Varejo stake in order to focus on its food business, as stated in a Nov. 23 securities filing.

“Other options were ruled out,” GPA said on Monday.

Last week, a Brazilian newspaper reported Chile’s SACI Falabella SA FAL.SN, South Africa’s Steinhoff International Holdings Ltd (SHFFp.J) and Brazil’s Lojas Americanas SA (LAME4.SA) are among the retailers interested in Via Varejo.

Reporting by Ana Mano; Editing by Matthew Lewis

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