French multinational retailer Carrefour S.A, is all set to take hold of at least 127 shopping malls of Klepierre, at an estimated price of $2.77bn.
Carrefour has already inked a memorandum of understanding (MoU) with Kleppiere, according to which, it will purchase these malls including 57 assets in France, 63 in Spain and seven assets in Italy. All are small and medium sized galleries.
The deal will be completed by the second quarter of 2014, and is not subject to debt financing or equity conditions.
Before the deal is finalized, both the companies will consult their respective employee representatives organization.
Further, they said that this particular transaction is yet to get approval from antitrust authorities in France.
Elucidating more on the prospective deal, chairman of Klepierre’s executive board, Laurent Moral said: "The reshaping of our portfolio resulting from the planned disposal of these galleries would accelerate our ambition to address the challenges of the evolving retail environment more effectively. This will also allow us to better leverage our retail asset management expertise.”
Briefing the media about the company’s future plans, Carrefour representatives have exuded confidence to set up a new company with 172 shopping malls that includes the 127 commercial galleries of Klepierre.
The experts were of the opinion that this deal, if accomplished, would increase the credit value of Klepierre and also decrease its Loan to Value (LTV) ratio below 40%.