chilean Businessman Álvaro Saieh Continues Divesting SMU Stake Amidst Mounting Debt
Santiago, Chile - Álvaro Saieh, the chilean businessman behind supermarket conglomerate SMU (owner of Unimarc, Alvi, and Mayorista 10, among others), has further reduced his holdings in the company, recently offloading a block of shares valued at over $522 million Chilean pesos (approximately $585,000 USD). This move comes as Saieh faces increasing financial pressure, including a recent asset seizure related too a substantial debt.
the sale, executed through CorpGroup Holding Inverisones Limitada and reported to the Financial Market Commission (CMF), involved 3.4 million shares at a price of $150.22 per share. This latest transaction adds to a series of SMU share sales by saieh in recent weeks, totaling approximately $10.8 billion Chilean pesos ($12.5 million USD) earlier in October through both CorGroup and the Epsilon Private Investment Fund. These divestments suggest a strategy to raise capital to address existing financial obligations.
The pressure on Saieh’s finances intensified on October 21st with an asset seizure at his vitacura residence, stemming from a debt exceeding US$27 million owed to Itaú Bank. The debt originated from a promissory note issued to Great Art Inc., a company linked to Saieh and registered in the British Virgin Islands, with a payment deadline of April 2024 that was not met.
Saieh has previously engaged in multiple sales of SMU shares over the years, a pattern analysts suggest is aimed at bolstering liquidity and managing his financial commitments. The ongoing sales and the recent asset seizure highlight the businessman’s current financial challenges and the potential implications for the future ownership structure of SMU, a key player in Chile’s retail sector.
