CorporaciónFavorita will acquire the majority percentage of the shares of Rey Holdings andits subsidiaries, shares listed on the Stock Exchange of Panama and the companythat owns the supermarket brands Rey, Romero and Mr. Precio, the chain ofFarmacias Metro and Zaz convenience stores.
GrupoRey is a 60-year-old company with an annual turnover of approximately $ 700million. It currently has a portfolio of 51 supermarkets, 76 pharmacies, 17convenience stores and 3 large production and distribution centers in Panama.
The company explained that the acquisition is financed entirely by international loans, without impact on the company’s liquidity in Ecuador, nor on the programmed local investments. The profitability generated by this new international productive investment will mean the collection of a higher Income Tax for the State.
Additionally,15% of the dividends received will be distributed to the workers of CorporaciónFavorita in Ecuador. The transaction will conclude in January 2019 aftercomplying with regulatory and securities market formalities in Panama, such asthe public offer to purchase shares and certain common conditions in this typeof transaction.
This acquisition in Panama is in addition to the growth strategy developed by Corporación Favorita and its subsidiaries in Ecuador, with initiatives that reach $ 750 million in investment and the creation of 6,000 new direct employment positions for the next five years.
So farthis year, an investment of $ 170 million has already been executed and around1,200 direct jobs have been created in Carchi, Cotopaxi, Tungurahua, Azuay,Manabi, Los Rios, Guayas and Pichincha. (I)