Brazil’s Magazine Luiza raises offer to buy Netshoes to $93.18 million

Industry:    2019-05-27

Netshoes Ltd said on Sunday Brazilian retailer Magazine Luiza SA had raised its offer to buy the online shoe retailer to $3 per share from $2 per share in a deal that would value the company at about $93.18 million.

Netshoes’ board has approved the amendment and recommended that shareholders favor it, the company said in a statement.

The offer will be voted on at the shareholders assembly scheduled for May 30, Magazine Luiza said in a securities filing on Sunday evening.

Magazine Luiza decided to raise its offer after rival Brazilian retailer Grupo SBF SA, which controls sports goods retailer Centauro, offered $2.80 per Netshoes share on Thursday.

Although Netshoes shares have risen with competition between bidders, they are far from reaching the $18 price they were sold in the initial public offering two years ago.

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