From La Estrella / La Prensa (Panama)
Corporación Favorita is an Ecuadorian business chain that has offices in commercial, industrial and real estate, with presence in Ecuador and several countries in the region.
It was announced in the morning that Rey Holdings Corp., known as "Grupo Rey" or "Company", was sold to Corporación Favorita, a corporation of Equator.
The press release announced that its majority shareholder had entered into an agreement to sell a controlling stake in Grupo Rey with Ecuador's leading sales force. According to Grupo Rey, "Acquisition will be done through a public bid to buy shares (OPA) at the Panama Stock Exchange, where Corporación Favorita undertakes to purchase at least 60% of the total number of common shares issued and in circulation by Grupo Rey. "
It should be noted that Corporación Favorita is a business group with operations in 6 countries of Latin America through 311 shops and was established in 1952 in Ecuador. Panama would be the seventh country, including Ecuador, where Corporación Favorita – which dates back to 1952 – has business interests. It is located in Colombia, Costa Rica, Chile, Paraguay and Peru.
The price per transaction per share is $ 8.58, subject to possible detentions and eventual joint adjustments for this type of transaction. The acquisition will be made through a public offer for the purchase of shares ("OPA") at the Panama Stock Exchange, where Corporación Favorita undertakes to purchase at least 60% of all common shares issued and in circulation by the King Group.
The terms of the OPA will be announced in detail by Corporación Favorita to all Shareholders of the Company at the end of this year after certain preconditions agreed in the Purchase Agreement have been met. It is estimated that the transaction will be closed in January 2019.
Grupo Rey has a portfolio of 4 formats and 80 stores in Panama, serving the country since 1958.
"Grupo Rey is very excited to have embarked on this new phase with a company such as Corporación Favorita, who has more than 65 years of experience in the industry," said a statement released on Wednesday, 7 November.
J. P. Morgan acted as an exclusive financial adviser to Grupo Rey and Arias, Fábrega & Fábrega and Simpson Thacher & Bartlett were legal advisors to the company.
While Corporación Favorita financially advised Proventus, Lexvalor Abogados and Icaza, González-Ruiz & Alemán took part as legal advisers.