Supermercados La Favorita C.A. reached an agreement to acquire a majority stake in Rey Holdings Corp. from its major shareholder for approximately $270 million.

Supermercados La Favorita C.A. (GYSE:SLU) reached an agreement to acquire Rey Holdings Corp. from its major shareholder and others for approximately $270 million on November 6, 2018. Pursuant to the agreement, Favorita launched an offer to acquire approximately 31.8 million shares of Rey at a price of $8.58 per share, subject to eventual readjustments.

La Favorita will acquire a minimum of 60% of Rey Holdings' common shares. Supermercados La Favorita will assume liabilities of $287.6 million. Post-completion, Hernan Muntaner will retained as Chief Executive Officer of Rey Holdings.

The Board of Rey Holdings will be presided by Andy Wright, manager of Favorita. The transaction is subject to a required tender of minimum of 60% of the shares. The transaction is expected to be completed by January 2019.

Icaza, Gonzales-Ruiz & Aleman and Arias Fabrega & Fabrega acted as legal advisors for Supermercados La Favorita. Jaime Mercado, Luis Pellerano, Enrique Gaijosa, Robert Holo and Nicole Humphrey of Simpson Thacher & Bartlett LLP acted as legal advisors for Rey Holdings Corp and J. P. Morgan acted as exclusive financial advisor to Grupo Rey. Proventus acted as financial advisor for Favorita while was Lexvalor Abogados acted as legal advisor.