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Chilean retailer SMU seeks to strengthen finances by divesting
August 5, 2013 / 2:57 PM / in 4 years

Chilean retailer SMU seeks to strengthen finances by divesting

SANTIAGO, Aug 5 (Reuters) - Chilean retailer SMU, which owns Unimarc, one of the country’s largest supermarket chains, is looking to sell some businesses to raise cash after an accounting error led it to breach debt covenants.

SMU, which is unlisted and controlled by Chilean billionaire Alvaro Saieh, said in a statement on Monday that it was looking to sell home-improvement chain Construmart, distributor Dipac, and Peruvian grocery chain Mayorsa.

The company, which has also put its 40 percent stake in supermarket chain Monserrat on the block, wants to raise between $300 million and $400 million.

Last month, SMU said reporting errors had led it to be in violation of some bond covenants and that it planned to raise up to $500 million in a capital increase. (Reporting by Rosalba O‘Brien; Editing by Maureen Bavdek)

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