CHILE - The shareholders of Falabella approved today an increase of the company’s capital through the issuance of 84.3 million shares, equivalent to US$ 800 million.

The capitalization will be used to fund the acquisition and to strengthen Linio, a Latin American marketplace; accelerate investments in logistics and technology to create a digital ecosystem to support Falabella’s current development; establish Ikea in Chile, Peru and Colombia; and to consolidate its increase in the equity interest of Sodimac Brazil.

Falabella will invest USD 285 million in Linio. USD 138 million will be used to fund the acquisition, and the remainder to strengthen its operations in the region. Another USD 200 million will be used to accelerate projects in logistics associated with its three retail formats; building capabilities to provide fulfillment services for third parties; and to continue with the development of an e-payments platform. It will also invest USD 120 million in improving its ability to know and serve its clients through data analytics and cyber security. In addition, it will deploy the first USD 150 million of the Ikea project in the short term. Last, it will dedicate USD 80 million to consolidate Sodimac Brazil.

The CEO of Falabella, Gaston Bottazzini, said that the capital injection “will allow us to respond to changes in customer preferences by building a digital ecosystem through the acceleration of investments in logistics and technology. In this way, we will continue improving our value proposition for our customers through different platforms which complement our existing stores and consolidating our leadership in the region”.