Retailers

Albertsons to Sell Casa Ley Interest for $345M

Proceeds to go to former Safeway stockholders

Albertsons Cos. has reached an agreement to sell its minority interest in the Mexican retailer Casa Ley to Tenedora for 6.5 billion pesos, or approximately $345 million.

Proceeds of the deal will be distributed to former holders of Safeway stock who received contingent value rights as part of Albertsons’ acquisition of Safeway in 2015. Safeway held a 49% interest in Casa Ley when acquired by Albertsons.

Albertsons said the net proceeds per CVR to be distributed to Casa Ley Holders at current exchange rates is estimated to be approximately 87 to 90 cents per Casa Ley CVR. Since the date on which the Casa Ley CVRs were issued, the Mexican peso to U.S. dollar exchange rate has deteriorated more than 20%.

The sale is subject to Mexican antitrust approval and other customary closing conditions and is expected to close by Feb. 28.

 

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