Netshoes is bought by Magazine Luiza for US$62 million

One of the biggest brands in Brazilian retail, the Magazine Luiza, announced to the market, this Monday (29), which signed a purchase agreement for netshoes by $62M monthly (equivalent to R$244 million), US$2 per share.

A netshoes, one of the leaders in the e-commerce in sporting goods in the world, faces a period of falling sales. Its current net debt is around R $ million 140, more than double that of 2018.

A B2W and Mercado Livre also showed interest in buying the company, but the Magazine had exclusive rights in the negotiations.

The negotiation establishes that the Magazine Luiza open a subsidiary in Cayman Islands and then merge with the netshoes. As the company's operation is headquartered in Cayman, this transaction is not subject to Corporation Law.

Furthermore, the Magazine and the shareholders of 47,9% of the capital stock of netshoes closed one voting and support agreement, that is, the majority shareholders voted in favor of the agreement proposed by the Magazine. Shareholders received the value of their shares in cash.

A Fusion is not yet completed. To finalize the agreement, the approval of two thirds of the company's shareholders and approval by the Administrative Council for Economic Defense (Where).

Since the publication of the first information about the negotiations, the shares of netshoes had high de 2,75%, closing in US$ 2,62.

The trajectory of Netshoes

founded by cousins Marcio Kumruian e Hagop Chabab, the e-commerce giant started its activities in São Paulo as physical store, in February 2000.

In 2002, the internet operations, but no products were sold in the first month or the second. Sales started in the third month and after five years came the bold decision to close physical stores and keep only the online one.

In 2009 the US fund Tiger Global Management bought 30% of the company, at the time valued at R $ million 300. In 2011, he founded and bought another 17%, controlling 47% of Netshoes' capital. In 2012, the company's revenue reached R $ 1,2 billion.

Now in a time of crisis, in addition to negotiations with the Magazine Luiza, netshoes sold its operation in Argentina to the group BT8 and did not inform the values ​​or details of the operation. The agreement was signed on Friday (26).

Source: money times, Valor Econômico e Forbes