Brazil retailer Grupo SBF again raises offer for Netshoes

Brazilian retailer Grupo SBF SA, which controls sports retailer Centauro, has raised its bid for Netshoes Ltd, the firm said late on Tuesday, as a bidding war for the struggling e-commerce player heated up.

Brazilian electronics and appliance retailer Magazine Luiza SA first agreed to buy Netshoes in late April, offering $2 per share, but that deal was countered by a $2.80-per-share offer from Grupo SBF last week. That offer was in turn countered by a $3 per share offer from Magazine Luiza over the weekend.

In a Tuesday securities filing, SBF said it again raised its bid, to $3.50 per share, valuing the firm at about $109 million.

As part of the proposal, SBF said the firm would offer 70 million reais ($17.4 million) in financial support to Netshoes immediately following a May 30 shareholders meeting and make its products available on Netshoes’ online sales platforms.

However, in a statement on Wednesday, Netshoes said it has adjourned its May 30 shareholders’ meeting, adding that the company and Magazine Luiza expect to agree on a new date for the meeting in the coming days.

Netshoes confirmed the receipt of the Brazilian retailer’s raised offer and said its board was reviewing the offer but has not made a final determination yet.

“Accordingly, the board reaffirms its existing recommendation of the transaction with Magazine Luiza S.A. without qualification”, Netshoes said in a statement.

A representative for Magazine Luiza did not immediately respond to a request for comment.