June 12, 2019 / 12:11 PM / a year ago

Brazil's Centauro boosts offer for Netshoes, intensifying bidding war

SAO PAULO, June 12 (Reuters) - Apparel retailer Grupo SBF SA , operator of Brazil's Centauro stores, has increased its offer for online sports retailer Netshoes Cayman Ltd to $3.70 per share, as it continues to try and outbid contender Magazine Luiza.

According to a securities filing late on Tuesday, the new offer raises the total value of Grupo SBF's bid to about $114.9 million, a 5.7% rise over the previous $3.50 per share bid.

Grupo SBF said shareholders of Netshoes are scheduled to deliberate on the transaction on June 14, and said it had sweetened the offer because of Netshoes' weak financial condition and short-term liquidity concerns.

The bidding war underpins the importance of internet merchants to attract shoppers who are increasingly inclined to buy products online on their smartphones and tablets.

At the end of May, Magazine Luiza had raised its own offer to $3 per share of Netshoes from $2 per share, valuing the company at around $93 million.

According to a Magazine Luiza securities filing on June 3, the board of Netshoes recommended that the target's shareholders vote in favor of that latest offer. (Reporting by Ana Mano; Editing by Bernadette Baum)

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