SAO PAULO (Reuters) – An investment firm backed by Brazil’s Moreira Salles family has decided to launch a tender offer to buy an additional stake in Alpargatas SA, the shoemaker said on Monday, driving its shares higher.
According to Alpargatas, which owns the Havaianas flip-flop brand, MS Alpa Participacoes said it would seek to buy up to 32 million preferred shares in the firm for 10.50 reais ($2.10) each, a premium of 17.2% over its May 19 closing price.
MS Alpa is controlled by the owners of holding firm Cambuhy and investment fund Alpa, linked to the billionaire Moreira Salles family, which are already part of Alpargatas’ control block with a total stake of about 28%.
Other major shareholders in the company include investment firm Itausa SA and Silvio Tini.
Shares in Alpargatas, which were down roughly 40% so far this year, jumped more than 17% after the announcement, their second largest daily rise in the last two years, as market participants praised the offer.
“We welcome the move from one of the company’s controlling and likely long term shareholder to increase its stake at a premium in a transparent and organized structure,” analysts at JPMorgan said.
The offering, they added, would be a good exit point even in the context that an insider is adding at a premium to current price levels.
Citi analysts said they believe the market may also interpret the move as an initial step towards a broader acquisition from controlling shareholders and potential de-listing following Alpargatas’ recent sell-off.
($1 = 5.0033 reais)
(Reporting by Gabriel Araujo and Andre Romani; Editing by Steven Grattan)