Cencosud Files ADS Sale

Chile’s Cencosud plans to sell up to $718m in ADS in an equity follow-on, according to a regulatory filing. It does not give the timing of the sale, representing 132m common shares, to be led by Credit Suise, JPMorgan, Morgan Stanley, UBS, Santander and BBVA. The supermarket operator is raising funds to pay down debt, and fund the acquisition of Jumbo Retail Argentina, in addition to general corporate purposes. Each ADS would be worth 3 common shares, and initially referenced by ADRs. The move comes under a a $2bn total capital increase approved last year. Cencosud has operations in Chile, Colombia, Peru, Argentina and Brazil. Its common shares closed at CLP2799 ($5.49) Monday.