Brazil's Magazine Luiza to buy Netshoes for $114.9 mln; shares rise

Credit: REUTERS/SERGIO MORAES

Brazilian retailer Magazine Luiza SA said shareholders of online sports retailer Netshoes Ltd had approved its bid for the company at $3.70 per share, according to a securities filing on Friday.

Adds context and share price

SAO PAULO, June 14 (Reuters) - Brazilian retailer Magazine Luiza SA MGLU3.SA said shareholders of online sports retailer Netshoes Ltd NETS.N had approved its bid for the company at $3.70 per share, according to a securities filing on Friday.

The company, which had been competing with rival retailer Grupo SBF CNTO3.SA to buy Netshoes over the past few days, said the $114.9 million transaction would be concluded by June 19.

Magazine Luiza's shares rose 2% on the São Paulo Stock Exchange.

Grupo SBF, which operates Centauro stores in Brazil, had revised its latest offer for Netshoes to $4.10 per share, corresponding to about $127 million. Netshoes had received the revised SBF offer, but said the board would be unable to evaluate it before a shareholder vote on the transaction scheduled for Friday.

That led Netshoes' board to reaffirm a recommendation for a transaction with Magazine Luiza. .

Shares of Netshoes fell around 2.5% in New York trading after Magazine Luiza announced its offer was successful.

(Reporting by Ana Mano Editing by Bernadette Baum)

((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob: +55-119-4470-4529; Reuters Messaging: ana.mano.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More