Carrefour Buying €365M Of Its Shares From Store Owner

Carrefour Buying €365M Of Its Shares From Store Owner

In a strategic maneuver set to reshape its share landscape, hypermarket behemoth Carrefour announced Tuesday its plan to repurchase nearly 3.5% of its share capital from the owner of Galeries Lafayette department store chain for a staggering €365 million ($396 million). The move, a key component of its broader €700 million share repurchase initiative, marks a pivotal moment in Carrefour’s trajectory.

Carrefour Buying €365M Of Its Shares From Store Owner: Daring Deal Unfolds

Carrefour Group, a prominent player listed on the Euronext Paris stock exchange, divulged in an official statement its agreement to acquire 25 million of its own shares from Galfa, a subsidiary of Motier SAS. Motier, acting as a special purpose vehicle, represents the interests of the illustrious Moulin family of France, who stand as the driving force behind the Galeries Lafayette SA empire.

Details regarding counsel representation for the buyback remain shrouded in mystery, adding an air of intrigue to the transaction.

Strategic Shuffle

This audacious transaction will see Motier’s stake in Carrefour slashed from its current perch at 13.73% to a diminished 7.71%. Alexandre Bompard, the astute chief executive of Carrefour, hailed the move as a catalyst for advancing the company’s share repurchase agenda under auspicious conditions, benefiting all stakeholders involved.

Carrefour Buying €365M Of Its Shares From Store Owner : Lock-Up Labyrinth

Motier, in a bold move signaling commitment, pledged to abstain from trading any Carrefour shares for the ensuing six months, entangled in a lock-up period that adds an element of suspense to the unfolding narrative.

Long-Term Vision

Philippe Houzé, the visionary vice chair of Motier, echoed sentiments of steadfast support for Carrefour, affirming their enduring commitment as long-term stakeholders. Since their initial investment in 2014, the Moulin family has stood as pillars of support for Carrefour’s ambitious endeavors.

Market Mystique

Shares in the Carrefour Group maintained a steady course, trading at €15.68 each early Tuesday afternoon, holding firm against the backdrop of this electrifying development.

Carrefour Buying €365M Of Its Shares From Store Owner : Strategic Revelation

The revelation of Carrefour’s buyback program in February, coinciding with the publication of its robust annual results for 2023, sent ripples through the market. With sales surging 4% to €94.1 billion and net income leaping 23% to €1.6 billion, Carrefour demonstrated its mettle amidst challenging market conditions.

Carrefour Buying €365M Of Its Shares From Store Owner : Future Fervor

Looking ahead with unwavering confidence, Carrefour reiterated its commitment to repurchasing €700 million of its shares throughout 2024, a testament to its robust operating performance and bullish business outlook.

Intriguing Past, Bold Future

With Carrefour’s bold move to reclaim its shares, the stage is set for a thrilling chapter in the annals of retail history. As the dust settles on this audacious transaction, all eyes remain fixed on the next twist in the saga of one of the world’s retail giants.