Banco Indusval SA said it signed an investment agreement with The Hive BR Holding LLC to develop a digital banking platform for unit Banco Intercap SA, catering to small and medium-sized enterprises.
The accord stipulates a capital injection by The Hive into Banco Intercap ranging between 2 million Brazilian reais and 10 million reais. The new shares to be issued will be paid-up at their respective book value on the closing date.
The Hive will also have performance targets that will be measured based on Banco Intercap's financial results for 2018 and beyond. If all targets are met, The Hive will be able to reach a total participation of up to 50%, minus one share, of Banco Intercap's voting capital.
Banco Indusval also noted that Everson Lopes has been elected as co-president of Banco Intercap and Jair Ribeiro da Silva Neto as vice president. Luiz Masagão Ribeiro and Rodrigo Silva Guarino, meanwhile, were appointed executive directors at the unit.
Lopes and Silva Guarino are entrepreneurs with extensive experience in financial technology firms and with advanced technologies, Banco Indusval said.
The new appointments are subject to approval from Brazil's central bank, as well as the fulfillment of certain conditions established in the investment agreement. The deal itself is also subject to regulatory and other customary approvals.
The agreement between Indusval and The Hive comes after the bank posted a second-quarter net loss of 55.4 million reais, widening from net losses of 31.6 million reais in the linked quarter and 19.8 million reais in the year-ago period.
As of Dec. 4, US$1 was equivalent to 3.25 Brazilian reais.
