Friday , June 18 2021

Panama: Grupo Rey is sold to an Ecuadorian company

By The Star / The Press (Panama)

Favorita Corporation is an Ecuadorian commercial chain that has branches in commercial, industrial and real estate areas, with presence in Ecuador and several countries in the region.

In the morning it was announced that King Holdings Corp. known as "Grupo Rey" or "Compañía", was sold to the Favor Corporation, an Ecuadorian company.

Through a press release, it was announced that its majority shareholder reached an agreement with the leading company in the sales sector in Ecuador, for the sale of a controlling stake in Grupo Rey. According to Grupo Rey, "the acquisition will be executed through a Public Stock Offer (OPA) on the Stock Exchange of Panama, where the Favorita Corporation undertakes to acquire at least 60% of the total of ordinary shares issued and in circulation of the Rey Group. "

It should be noted that Favorita Corporation is a business group with presence in 6 Latin American countries, through 311 stores and was founded in 1952 in Ecuador. Panama would be the seventh country, including Ecuador, where the Favor Corporation – dating from 1952 – has commercial interests. It is found in Colombia, Costa Rica, Chile, Paraguay and Peru.

The transaction price per transaction equals $ 8.58, subject to withholding and any common adjustments in this type of transaction. The acquisition will be made through a Public Stock Purchase Offer ("Takeover bid") on the Stock Exchange of Panama, where the Favored Corporation undertakes to acquire at least 60% of the total of ordinary shares issued and in circulation of Grupo del Rey.

The terms and conditions of the takeover bid will be communicated in detail by the Preferred Corporation to all the company's shareholders at the end of this year, after fulfilling certain preceding conditions agreed upon in the purchase agreement for shares. The transaction is estimated to 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 embark on this new stage with a company like Favorita Corporation, which has more than 65 years of experience in the industry," said the press release published on Wednesday, November 7.

J.P. Morgan acted as the exclusive financial advisor of the Rey and Arias Group, Fábrega & Fábrega and Simpson Thacher & Bartlett were legal advisors to the company.

While Favorita Corporation was financially advised by Proventus and Lexvalor Abogados and Icaza, González-Ruiz & Alemán participated as legal advisors.

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