Cencosud Buys Peru’s Wong for Cash, Stock

Chile’s Cencosud is acquiring leading Peruvian retailer Grupo Wong in a transaction worth $500m equity value. The Wong family, which owns 96.83% of Grupo Wong, will get 49.75m shares of the Chilean retailer under the deal, which is valued at 2,000 pesos a share. Credit Suisse was the sole bank involved as Cencosud apparently did not use an advisor. Wong controls 62% of Lima’s retail market. Cencosud is also in the market with a $490m 5-year amortizing loan to pay for the acquisition of Brazilian grocery chain G. Barbosa. That deal is scheduled to close in January and steps up from Libor plus 35bp in year one to 40bp in year two, 45bp in year three and 60bp in years four and five. It amortizes by 25% in years three and four and the remaining 50% in year five. Santander is leading, with BBVA and BNP as bookrunners.