Brazil's Gafisa hires five banks for Tenda IPO, source says
26/09/2016 20:32
SAO PAULO, Sept 26 (Reuters) - Brazilian homebuilder Gafisa
SA GFSA3.SA has hired five investment banks to oversee the
listing of low-income building unit Construtora Tenda SA, a
person with direct knowledge of the matter said on Monday.
According to the person, who asked for anonymity because the
decision is private, Gafisa hired the investment-banking arms of
Banco Bradesco SA BBDC4.SA , Banco do Brasil SA BBAS3.SA ,
Itaú Unibanco Holding SA ITUB4.SA , Banco Votorantim SA
VOTORT.UL and Bank of America Corp BAC.N .
The person did not give a timetable for a formal regulatory
request for Tenda's initial public offering, adding that the
formal contract with the banks has yet to be signed formally.
Gafisa and Banco Votorantim declined to comment. The other
four banks did not have an immediate comment.
Reuters reported on Aug. 23 that Gafisa was inclined toward
listing Tenda on the São Paulo Stock Exchange over selling a
stake in the company to an investor. urn:newsml:reuters.com:*:nL1N1B40RV
According to people familiar with Gafisa's strategy, an IPO
would be more effective than a spinoff in helping to cut
Gafisa's debt-to-equity ratio, which is near 80 percent.
Newspaper O Estado de S. Paulo reported earlier on Monday that
Gafisa hired the five banks for the offering.
The person added that Gafisa expects the offering to help
price Tenda's business between 650 million reais and 900 million
reais ($201-$277 million), a value in line with that of rivals
in Brazil's low-income housing market.
Gafisa's current market value is 926.3 million reais.
($1 = 3.2442 Brazilian reais)
(Reporting by Tatiana Bautzer; Editing by Guillermo
Parra-Bernal)
((tatiana.bautzer@tr.com; Tel: +55-11-5644-7756; Mob:
+55-119-4210-4173; Reuters Messaging:
tatiana.bautzer.thomsonreuters.com@reuters.net))
Keywords: GAFISA IPO/TENDA