After several quarters with complicated financial results, the Chilean retail giant Falabella recently lost its investment grade, after the agency Fitch Ratings will lower its rating from “BBB-” to “BB+”. On the same day, the company announced a new movement in its structure.
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Falabella and its subsidiary Plaza SA have signed a memorandum of understanding (MoU), which seeks the transfer of their assets in Peru.
“The purpose is for both parties to develop the pertinent analyzes and proceed to negotiate in good faith a framework agreement in which the terms and conditions and structure of an agreement will be regulated. eventual transaction consisting of the integration into Plaza of real estate assets located in Peru, owned by Falabella Perú and its subsidiaries”the company indicated in a statement.
This movement contemplates a process of analysis, negotiation and valuation that would last up to 120 days. While, Falabella stated that Peruvian assets must include mall-type shopping centers and power centers.
Thus, Plaza SA (Mallplaza) will acquire 100% of the Mallplaza Perú business, of which it currently owns 33.3% and, with it, the 11 Open Plaza establishments it has in the country.
“Falabella would thus begin to operate in Peru under a single real estate structure.in line with the company’s strategy of being increasingly simpler and more efficient in its operation”added the company.
The form of financing the operation will be negotiated between the parties and established in the Framework Agreement, the company stated.
A few days ago, the Chilean company announced a plan to sell assets, mainly real estate, that will allow it to raise between US$800 million and US$1,000 million. At the end of the third quarter, Falabella recorded a 10% decrease in income compared to the similar period last year.
READ ALSO: Falabella and a continuous restructuring: it will sell assets for up to US$ 1,000 million
