Argentina's Banco Industrial SA, known as Bind, in partnership with stockbroker Nápoli Inversiones S.A., won an auction to acquire Garantía de Valores S.G.R. from Caja de Valores SA for some $2.3 million, according to a report by El Cronista.
The companies will reportedly pay 20% of the amount in cash and the rest in six half-year installments for the unit. Garantía de Valores provides guarantee services to small and medium-sized enterprises in Argentina. As of Sept. 30, 2017, it had total assets of 221.2 million Argentine pesos.
According to El Cronista, industry observers look at the deal as a sign of regulatory changes in the Argentine financial system, with reciprocal guarantee companies such as Garantía de Valores reportedly getting less tax exemptions and protection from the government, meaning that such companies would benefit from more scale.
Stockbrokers Cohen and Criteria reportedly also made an offer to acquire the company.
As of Feb. 2, US$1 was equivalent to 19.50 Argentine pesos.
