Brazil's Caixa Takes Step Toward IPO for Insurance Unit
August 25 2015 - 3:30PM
Dow Jones News
SÃ O PAULO—Brazil's state-owned lender Caixa Economica Federal
took its first formal step toward holding an initial public
offering for its insurance subsidiary as part of an effort to help
the government improve its fiscal situation.
Caixa filed a plan to sell shares with Brazil's Securities and
Exchange Commission, the CVM, though the lender didn't unveil an
exact timetable or the amount to be raised from the operation. The
CVM must approve the plan before the sale can move forward.
BB Investimentos, UBS, Goldman Sachs, Bradesco BBI, Itau BBA,
BTG Pactual, Bank of America Merrill Lynch, Brasil Plural, Citibank
and Banco Santander were hired to coordinate the operation,
according to the filing.
The Wall Street Journal reported in July that the bank plans to
sell as much as 25% of the unit in an operation that could generate
up to 11.25 billion reais ($3.2 billion), citing a person close to
the plan who declined to be named. A bank spokeswoman declined to
comment for this article. Caixa is fully controlled by Brazil's
federal government.
Banco do Brasil, the country's largest government-run bank, two
years ago raised 11.5 billion reais via the sale of shares in its
pension and insurance unit, BB Seguridade. That sale, the largest
IPO in the world in 2013, will likely serve as a reference for the
IPO of Caixa's insurance unit.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 25, 2015 16:15 ET (20:15 GMT)
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