Sovereign Fund of Brazil to Buy Banco Do Brasil Shares
21. Jun, 2010
According to the Wall Street Journal, “The Brazilian sovereign wealth fund will buy 66.5 million shares to be offered by state-run Banco do Brasil SA, Latin America’s biggest bank by assets, through bank’s primary and secondary offering of shares on the Sao Paulo Stock Exchange, BMFBovespa.
Banco do Brasil said, in a statement late Wednesday, that Brazil’s sovereign wealth fund, Fundo Soberano do Brasil, will acquire its shares via a special fund known as FFIE.
Earlier this month, Banco do Brasil said it will offer a total of 356.85 million shares, with 286 million shares through a primary offering and 70.8 million shares via a secondary offer. The operation could raise about 9.77 billion reais ($5.46 billion) based on Banco do Brasil’s closing price of BRL27.39 on Wednesday.
Investors can reserve shares from June 21 through June 29. Trading is expected to begin July 2. With the acquisition of shares to be made by the sovereign wealth fund, the federal government will keep its control on Banco do Brasil.
Brazil created the sovereign wealth fund in late 2007 with the aim of reinforcing public sector savings and funding projects of strategic interest abroad.”
Read more: Wall Street Journal
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