PARIS (dpa-AFX) - French retail company Casino Group (0HB1.L, CGUIY.PK) announced Monday the acquisition of CBD Luxembourg Holding from GPA. The purchase price has been set at 10 million euros.
CBD Luxembourg indirectly holds 34 percent of Cnova's share capital, or around 117.30 million ordinary shares.
The deal will increase Casino's stake in Cnova, directly and through wholly-owned subsidiaries, to 98.8 percent.
Of the purchase price, 80 percent is to be paid on completion of the deal, which is expected by November 30, and 20 percent by June 30, 2024 at the latest.
As per the deal, Casino, under certain conditions, will make the payment of an earnout for a higher valuation of Cnova than that resulting from the deal. This will happen if a transaction involving its stake in Cnova were to take place within the next 18 months.
The potential earn-out will be calculated based on the difference between the implied value of 29.4 million euros for 100 percent of Cnova resulting from the initial transaction, and the value of Cnova resulting from a subsequent sale by Casino.
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