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Banco do Brasil raises Patagonia stake to 80% as shareholders exercise option

Banco do Brasil SA has increased its stake in Banco Patagonia SA to 80.38% from 58.97% after three minority shareholders in the Argentine bank exercised the option to sell their stake to Brazilian bank in an operation valued at about $202.4 million.

In a June 15 statement, Banco do Brasil said shareholders Jorge Guillermo Stuart Milne, Ricardo Alberto Stuart Milne and Emilio Carlos Gonzalez Moreno exercised an option to sell 154,014,912 shares, corresponding to a 21.42% stake. The transaction is subject to approval from both Banco Central do Brasil and Banco Central de la República Argentina.

In May, Banco do Brasil CEO Paulo Rogerio Caffarelli said the bank is not considering relinquishing its majority stake position in Patagonia after opting to cancel a plan to sell it.

Caffarelli said Banco do Brasil's decision to sell has "lost meaning" after the bank reinforced its capital through greater organic organization and an adequate return on investment from Banco Patagonia. He also noted Banco do Brasil would only implement an IPO of the bank's shares "when the right time comes."

Banco Macro SA was thought to be the forerunner to buy Patagonia before reportedly dropping out of the bidding process in July 2017.