One of Brazil’s wealthiest families is looking to increase its stake in Alpargatas SA, the maker of the iconic Havaianas flip flops, in an offering that would make it the biggest holder of the firm.
(Bloomberg) — One of Brazil’s wealthiest families is looking to increase its stake in Alpargatas SA, the maker of the iconic Havaianas flip flops, in an offering that would make it the biggest holder of the firm.
The Moreira Salles family offered to buy as much as 32 million preferred shares of Alpargatas through an investment vehicle owned by its private equity firm Cambuhy Investimentos Ltda and its family office Brasil Warrant Gestao de Investimentos, according to a filing Monday. The proposed price of 10.5 reais apiece implies a 17% premium over Friday’s close.
The company’s preferred shares climbed 15% at the open in Sao Paulo Monday. Year to date, the stock is down 32%, with a current market capitalization of 6.9 billion reais ($1.4 billion).
If the transaction is successful, the family would own 33.3% of the shares, up from the current 28.6%, according to calculations based on regulatory filings. Control of the footwear company is shared between the Moreira Salles family and holding firm Itausa SA.
The move may be interpreted as “the initial step” toward a broader acquisition from controlling shareholders and a potential delisting, Joao Pedro Soares, a Citigroup Inc. analyst, wrote in a note.
The Moreira Salles family, which is behind banking giant Itau Unibanco Holding SA and also owns interests in firms from power company Eneva SA to niobium producer Cia. Brasileira de Metalurgia & Mineracao, has a fortune of more than $23 billion spread across four brothers, according to the Bloomberg Billionaires Index.
The proposal will remain valid for 30 days starting Tuesday, according to the filing.
(Adds comments from Citi in fifth paragraph, mentions Itau Unibanco stake in sixth.)
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