Sonae backtracks on share sales action
The Portuguese giant Sonae, which manages a diverse portfolio of companies, has backtracked on plans to float a number of it shares on the open market in a Public Sale Offer (PSO).
A Public Sale Offer or Public Offering is the offering for sale of securities or shares belonging to a company of similar corporation to the public which will generally be listed on the stock exchange.
Sonae decided to cancel its share offer exactly one week after the operation had been approved by the Portuguese market and securities commission CMVM.
The company which owns the hypermarket chain Continente, will no step back from dispersing the capital of its retail arm explaining the decision on the current volatility of the international markets.
In a communique to the CMVM, Sonae states, “Sonae SGPS informs that given the adverse conditions in the international markets, the institutional offer will not be made, which means, as a consequence, that the public sale offer of Sonae MC shares will not now proceed.”
Sonae MC has created a number of retail brands over the years including Continente and Modelo (supermarkets), Well’s (pharmacies), Note! (stationary) and ZU (pet shops).
With the creation of MC which planned to float shares to the public costing between €1.40 and €1.65 per share, Sonae aimed to raise money by giving investors the chance to capitalise on its retail business in itself without buying shares directly linked to the Sonae holdings other business areas.
The model proposed aims to appeal to large investors who prefer simple investment structures that are easy to understand as well as general public savers who can feel like they are gaining dividends at the end of the year from the money they have spent at the supermarket checkouts.