3 Comments
Nov 7, 2023Liked by Clark Square Capital

Would there be any taxes related to monetization of XETO and the French asset .

Expand full comment
author

Hi Steve, thanks for the questions.

If you assume they have to pay capital gains taxes on Exito/Cnova/divestments, this would be max a $0.30 hit to the price target. However, CBD's cost basis in Exito is significantly higher than what they will sell the shares for (~$2.5B, if I recall correctly) and they have another $800m in tax assets they could likely use to offset most of these gains.

Expand full comment

So they don't have a tax of .3 right?

Expand full comment