Chile Retailer Cencosud Rises After Pricing Shares (Update3)

By James Attwood and Nathan Gill

     Nov. 19 (Bloomberg) — Cencosud SA rose for the first time in three days in Santiago trading after pricing new shares at a 12 percent premium to yesterday’s closing price.
     Chile’s biggest retailer advanced 2.1 percent to 1,005 pesos, recovering most of the ground lost in the previous two days.
     Directors priced the sale of 150 million new shares at 1,100 pesos each. The transaction, approved by shareholders Oct. 30, will raise 165 billion pesos, or about $255 million, the Santiago-based company wrote in an e-mailed statement yesterday.
     “The announcement is a sign of confidence from the controlling directors that the share price is cheap,” Antonio Cruz, an analyst at Santander Investment, said today in a phone interview from Santiago. “By putting a price of 1,100 on shares, they are saying that they are willing to buy at this price. This puts a certain floor under the stock.”

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