BTG Pactual Group is evaluating separate market listings for its investment bank and private equity operations in an effort to provide "greater transparency" for the assets of each business.
In a Jan. 27 statement, BTG said that in contemplating separate securities trading for Banco BTG Pactual SA and BTG Pactual Participations Ltd., it is aiming to provide a clearer differentiation between Banco BTG's banking and asset management activities and BTG Participations' private equity activities.
The company also noted that listing the banking unit separately could provide greater liquidity for its shares, as it would allow those securities to be included in major trading indexes. Currently, the inclusion of the private equity interests with Banco BTG's shares do not allow for index inclusion.
"The companies are analyzing all applicable structural, regulatory, legal and operational matters for a potential implementation of such independent trading," BTG Pactual said. "However, as of the present time, no decision has been made by their respective boards of directors to implement any alternative structure or how any such alternative structure would be implemented."
Still, the group has put forward proposed bylaw amendments that would allow it to move forward with independent listings. Shareholders of Banco BTG will meet on Feb. 13, while BTG Participations shareholders will meet on both Feb. 3 and Feb. 13.