MS Alpa Participacões Ltda., an entity owned by Cambuhy Alpa Holding Ltda., and Alpa Fundo de Investimento em Acões, who are part of Alpargatas’ controlling shareholders group, have offered to purchase an additional 32 million shares in the Brazilian footwear company on the open market for 10.50 Brazilian reais each for a total of R$336.0 million (€62.1m). The bid, valid for 30 days starting May 23, represents a 17.2 percent premium on the May 19 $R8.96 closing price on Alpargatas shares.
Earlier this month, Alpargatas reported a 2.7 percent decline in Q1 sales to R$902.5 million (€163.0m) and a 450-basis-point decline in gross margin to 43.1 percent due to higher manufacturing and storage costs in Brazil that are projected to decline in the coming months as the group’s inventory level drops.
Meanwhile, the company is continuing its search for a new CEO to replace Beto Funari, who resigned on April 27. He has been replaced on an interim basis by board member Luis Fernando Ziegler de Saint Edmond.
