BRB-Bank of Brasilia-(BSLI3;) announced on Friday (28) agreement for the purchase of the Master Bank and incorporation of the company to the bank conglomerate, as approved by its board of directors. The contract involves the purchase of 58% of Banco Master’s total capital for the acquisition of 49.0% of common shares and 100% of preferred shares.
The acquisition price to be paid by BRB will be equivalent to 75% of the consolidated equity of the Master Bank, calculated according to audited financial statements, adjusted by any assets or recognition of notes in the balance sheet.
The amount will be made as follows: (i) 50% will be paid in cash on the operation date of the operation; (ii) at least 25%, and up to 50%, to be determined until BRB’s Bank Diligence is completed, will be retained by BRB and deposited in a Scrow account for the purpose of guaranteeing compensation for sellers provided for in the contract; and (iii) If the amount withheld from item (ii) is less than 50%, the remnant will be paid on the 2nd anniversary of the operation date.
According to the statement, the operation aims to incorporate Banco Master into the Prudential Conglomerate of Banco BRB, “in line with its strategy of expansion and strengthening its position in the financial market.”
Companies will maintain the structures of the companies apart (Stand Alone), with governance sharing, expertise, synergies and strategic and operational coordination, emphasizes BRB.
“Banco Master (…) adds expertise expertise in payroll loans, exchange, capital market and wholesale, areas in which it has shown significant growth in recent years. This specialization complements the structure of BRB, expanding the reach and diversification of services offered. Already Will Bank, digital Bank of the Master Group, expands the digital presence of the conglomerate, enabling more agile and efficient service to the low -income public,” The statement.
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The operation will be preceded by a corporate reorganization of Banco Master, so that certain non -strategic assets and liabilities, including controlled corporate stakes, will be segregated from the Master Bank prior to the operation.
The operation is subject to the approval of the Central Bank of Brazil, Administrative Council for Economic Defense (Cade) and other regulatory approvals.
(com Reuters)
