Exito Raises Capital For Acquisition Of Carulla Vivero And Expansion

Colombia's largest retailer Almacenes Exito has announced plans to raise COP435bn (US$223mn) through a share issue. The extra capital will be used to acquire the 22.5% stake in its Carulla Vivero unit that it does not already own and to finance expansion. Exito acquired a controlling stake in Carulla Vivero in 2007 and the full consolidation should help drive down costs as the synergistic benefits become fully realised. Exito is expected to be left with around COP200bn in cash to continue its expansion in Colombia. However, the move comes at a difficult time, with the economic downturn putting downwards pressure

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