The Brazilian government approved the sale of a portion of its stake in Banco do Brasil SA, although it will continue to hold control of the bank.
In a filing, Banco do Brasil said the government issued a decree authorizing the sale of 20,785,200 common shares it holds in the bank, which will not result in a loss of control for the government. Brazil's government directly owns a 52.16% stake in Banco do Brasil, according to S&P Global Market Intelligence data.
Meanwhile, a source with knowledge of the matter told Reuters that both the government and fellow state-run bank Caixa Econômica Federal will soon register a secondary offering of Banco do Brasil shares.
Earlier in August, the newswire reported that Banco do Brasil is preparing a follow-on share offering that could total up to 7.9 billion Brazilian reais.
As of Aug. 23, US$1 was equivalent to 4.08 Brazilian reais.
