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December 12, 2007 |
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GRUPO GIGANTE: Selling 206 Stores to Organizacion Soriana Grupo Gigante would sell its 199 Mexican stores and seven Los Angeles units to Mexican retailer Organizacion Soriana SAB, The Associated Press reports, citing Organizacion Soriana. Reuters relates that Grupo Gigante had recently disclosed that it wanted to sell some of its business. The AP notes that the stores Grupo Gigante would be selling operate under these names: -- Gigante, -- Bodega Gigante, -- Super G, and -- Gigante USA. Organizacion Soriana told Reuters that it had an accord to acquire the operations of the stores, which are about 75% of Grupo Gigante's existing stores. According to the AP, the planned sale caused the Mexican Stock Exchange suspended the trading in Grupo Gigante's shares last week until the company disclosed information on the accord with Organizacion Soriana. An agreement between Grupo Gigante and Organizacion Soriana needs authorization from the Federal Competition Commission of Mexico, the AP says. Organizacion Soriana said in a filing with the Mexican Stock Exchange that once approval is secured, the agreement would include: -- 12 distribution centers, -- software, -- information technology systems, and -- the Grupo Gigante stores' inventory. Organizacion Soriana told the AP that its agreement with Grupo Gigante would grant it full access to the Mexican market, where Grupo Gigante has 47 stores. The accord would also let it increase its "floor space" by 47%. About Organizacion Soriana Organizacion Soriana S.A. de C.V. operates multi-format stores, selling food items, clothing, general merchandise, healthcare products and basic services on a wholesale and retail basis. The company has 234 stores located in 112 major cities across 29 states in Mexico, it has seven distribution centers and is headquartered in the city of Monterrey, Nuevo Leon. It offers a Customer Loyalty Program, which has enabled Soriana to set up databases to support its Customer Relations Management program, which is designed to better understand its customers' needs and target its promotional offers. It offers services, such as funds transfer from the United States to Mexico, consumer credit for customers without bank accounts, a store credit card with special benefits for holders, electronic food coupons to replace the traditional paper ones, Monedero del Aprecio to accumulate discounts and home shopping delivery. About Grupo Gigante With over 600 units in Mexico, Grupo Gigante, S.A. de C.V., is a public Mexican trade company, which operates in the Mexican Stock Market -- Bolsa Mexicana de Valores. Through its subsidiaries, Gigante has developed leading chains of supermarkets, family restaurants, and specialized commerce, for 43 years. Its saubsidiaries include 'Gigante', which contains formats including: 'Gigante' (Hypermarkets), 'Super Gigante' (Supermarkets), 'Super Maz' and 'Bodega' (Warehouses), all of them supermarket chains, as well as 'Cafeterias Toks, S.A. de C.V.,' a specialized family restaurant chain. With its partners, Grupo Gigante has also established joint ventures, developing Office Depot de Mexico, S.A. de C.V., a Mexican leader chain store of office and school supplies, and Radio Shack de Mexico, S.A. de C.V., an exclusive format with presence throughout the Mexican Republic, that offers a wide assortment of electronic equipment and accessories. * * * As reported on July 13, 2007, Fitch Ratings affirmed the 'BB' foreign and local currency Issuer Default Ratings of Grupo Gigante S.A.B. de C.V., as well as the 'BB' rating of Gigante's US$260 million Senior Notes due 2016. Fitch said the rating outlook is stable. |
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