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Banco do Brasil completes stake purchase in Argentina's Banco Patagonia

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Banco do Brasil completes stake purchase in Argentina's Banco Patagonia

Banco do Brasil SA on Sept. 6 completed a transaction that increases its stake in Argentina's Banco Patagonia SA to 80.39% from 58.97%, according to a regulatory filing.

In June, three minority shareholders in Patagonia exercised the option to sell their stake to the Brazilian bank in an operation valued at about $202.4 million. The Brazilian state-controlled bank now holds 578,116,870 Patagonia common shares.

The transaction will lower Banco do Brasil's common equity Tier 1 ratio by an estimated 12 basis points, according to the filing.

Shareholders Jorge Guillermo Stuart Milne, Ricardo Alberto Stuart Milne and Emilio Carlos Gonzalez Moreno on June 15 exercised an option to sell 154,014,912 shares, corresponding to a 21.42% stake. The transaction had been subject to approval fromBanco Central do Brasil and Banco Central de la República Argentina.

In May, Banco do Brasil CEO Paulo Rogerio Caffarelli said the bank was not considering relinquishing its majority stake position in Patagonia, but the executive later said the bank would not rule out a potential new initial public offering for the bank.