French supermarket retailer Casino (CASP.PA) said on Monday that it had launched a stake sale in Brazilian cash-and-carry chain Assai (ASAI3.SA) as part of its general debt-cutting plans, lifting its struggling shares.
Casino said it was selling 140.8 million shares in Assai, representing 10.4% of the company's share capital, and that it could sell a further 3.7% later.
Based on Assai's closing share price of 19.21 Brazilian real ($3.55) on Nov. 25, the sale of 140.8 million shares would be worth 2.7 billion reals ($499 million).
Casino said the Assai share sale would take the form of a secondary public offering.
Shares in Casino rose by around 1.4% in early trading, although the stock is around 50% lower since the start of 2022 due to concerns over Casino's debt burden and its low cash flows.
Casino is aiming to complete a 4.5 billion euro disposal plan by the end of 2023.
