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Report: Caixa could exercise 'tag-along' right in BTG Pactual's sale of Pan Seguros stake

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Report: Caixa could exercise 'tag-along' right in BTG Pactual's sale of Pan Seguros stake

has 30days to decide if it will exercise its right to "tag-along" for thesale of BTG PactualGroup's stake in PanSeguros SA to CNPAssurances SA, Diario dePernambuco reported May 7, citing the state-run broadcast service.

Caixa hasbeen threatening to block the sale unless it also includes Caixa's 49% stakein Pan Seguros, according to previous reports.

The"tag-along" right is a tool to protect minority shareholders andguarantee their right to exit the company once an investor, who is notoriginally from the organization, buys its controlling stake.   

Under the"tag-along" right, the state-owned bank would receive the same amountto be paid to BTG Pactual, or about 700 million Brazilian reais, the reportnoted.

However,the France-based insurer is reportedly not interested in acquiring the share ofCaixa and could set the precedent condition of not exercising the"tag-along" right in acquiring the 51% stake of BTG Pactual, thepublication cited sources as saying.

As of May 6, US$1 wasequivalent to 3.54 Brazilian reais.