SAO PAULO, Aug 17 (Reuters) – Brazilian retailer GPA said on Wednesday it had reached a deal with financial institutions to secure around 2 billion reais ($387.15 million) in receivables related to the sale of 70 of its locations to wholesaler Assai (ASAI3.SA).
GPA said it will receive the amount in up to three tranches throughout the third quarter of 2022.
Assai, a cash-and-carry chain that spun-off from GPA in February last year, struck a deal with its former parent company in December to acquire 70 stores of the brand Extra and some real estate for a total of 5.2 billion reais, some of which has already been paid.
GPA added in as a filing that the move should reduce its financial leverage, measured by its net debt divided by adjusted earnings before interest, taxes, depreciation and amortization from the last 12 months to 1.1 times, from 1.9 times previously.
($1 = 5.1660 reais)
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Reporting by Peter Frontini and Carolina Pulice; Editing by Sandra Maler
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