Carrefour properties to merge ahead of stock listing

Real estate firm Carmila, controlled by French retailer Carrefour, aims to achieve a stock market listing through a merger with Cardety, another property firm linked to Carrefour, both companies said.

Carrefour, the world's second-largest retailer, had previously said it hoped to launch an initial public offering for Carmila this year. The plan outlined by the companies late on Thursday involves Carmila being absorbed by already listed Cardety. The new entity, owned 42.4 percent by Carrefour, will be quoted on Euronext Paris and be called Carmila.

"As part of its development plan, the new merged entity would proceed, subject to market conditions, with a capital increase of approximately 500 to 600 million euros ($525 million-$630 million), which would imply a placement of new shares on the market in the course of 2017," the companies' joint statement said.

Carmila and Cardety are both retail property companies specializing in the management of shopping centers and retail parks anchored to Carrefour stores.

Under the terms of the proposed merger, the exchange ratio would be three Carmila shares for one Cardety share, subject to shareholder approval.

The new merged entity would own a portfolio with an appraised value of 5.3 billion euros as of Dec. 31, 2016, including 205 shopping centers.