May 1, 2023Liked by Giro Lino

Hi. Thanks for your writeup. Appreciate the idea.

A couple of questions remaining. Firstly, when is the LDT to be eligible for the spin? Secondly, will Exito be relisted in depository receipt form like CBD? If so, when will this listing be?

A couple of comments as well. I don't really get a sense of how Exito is valued on a relative basis. It might be overvalued at $0.8 and it appears that it will suffer from a share overhang issue until Casino is able to get its leverage issues solved. Further, I don't get a clear picture what businesses remain in CBD, i.e. are there many, are they fully owned or are there minorities, is there debt at the centre etc.

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Hi, Oliver

- Exito will be listed at NYSE and B3. The company filed for the listing. This is the last step in the spin-off. About the timing, it should be by the end of the 1H23.

- At the current price, the shareholders will receive their shares trading at 3x EV/Ebitda, which is far from expensive. The timing of the spin-off is more related to Casino. They're looking to sell their LatAm subsidiaries, so they need this spin-off to happen asap.

- About GPA, the remaining company will have ~200 stores in Brazil with +US$250m Ebitda. FCF-wise, the fair multiple would be around 5x. However, I understand there is much going on, and trading at the fair multiple would be like a "blue sky scenario."

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