Groupe Casino is to up its share in Brazilian retailer CBD to 35.4 per cent from 34.8 per cent following approval from CBD shareholders, at a total value of BRL71m (US$33.4m).
'Amortisation of this goodwill agreement will generate total tax savings of BRL517m (US$243m) for CBD over an estimated six-year period beginning in 2008,' the group said in a statement. 'In exchange for the transferred goodwill, CBD has agreed to pay 80 per cent of the tax savings back to Casino in the form of CBD preferred stock.'
Casino reported that overall group sales fell during the first quarter of 2009, down 3.3 per cent, hit by lower domestic sales that dropped 5.6 per cent. International sales, however, jumped 1 per cent through the three-month period.
