Itaú Scoops Up Pactual Stakes
December 31 2015 - 10:40AM
Dow Jones News
SÃ O PAULO—Brazil´ s giant bank Itaú Unibanco Holding SA agreed
to buy a controlling stake of debt collector Recovery do Brasil
Consultoria SA from troubled investment bank BTG Pactual SA, for
640 million reais ($162 million).
Itaú on Thursday said it would buy a stake of around 82% of
Recovery do Brasil, representing BTG's entire stake in the
company.
"Simultaneously with the acquisition of the share in Recovery's
equity stock, Itaú Unibanco shall, under the same operation,
acquire approximately 70% of a portfolio of BRL38 billion in credit
rights associated with recovery activities concerned with
portfolios over which BTG has title," said Itaú , which will pay an
additional amount of BRL570 million for this.
Recovery was founded in 2000 in Argentina and has been in Brazil
since 2006. Recovery's activities consist of prospecting and
evaluating portfolios, structuring operations, and conducting
operational management, with a presence in every segment from
individuals to corporate credit, with financial and nonfinancial
institutions.
Both operations still must receive regulatory approval. "The
operation is not estimated to have material accounting effects for
Itaú Unibanco's 2016 bottom line," it said.
BTG Pactual, once a growing investment bank with global
ambitions, has been selling assets to raise cash after the arrest
of its founder and former CEO André Esteves, on Nov. 25.
Earlier this month, Brazil's Supreme court released Mr. Esteves
to house arrest but banned the banker from running companies
involved in a corruption probe centered on state-run oil firm Petró
leo Brasileiro SA, or Petrobras. Mr. Esteves was arrested on
suspicion of obstructing the investigation.
Through his lawyers, who said there wasn't sufficient evidence
to hold him in prison, Mr. Esteves has denied wrongdoing. But he
still faces charges and a pending trial for allegedly trying to
obstruct the investigation.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
December 31, 2015 10:25 ET (15:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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