Cade’s Superintendence recommends approval of the purchase of Banco Modal (MODL11) by XP (XPBR31)
The deal was announced in January with Banco Modal, which was valued at US$ 528.5 million.
The superintendence of the Administrative Council for Economic Defense (Cade) recommended the approval of the purchase of Banco Modal (MODL11) by the XP Inc (XPBR31).
The negotiation was announced in January by XP with the Modal Bank, which was valued at $528.5 million. The transaction was carried out through an exchange of shares.
At the time, XP released a statement anticipating a possible non-approval of the transaction by the competition protection authorities.
“If the merger of 100% of the bank’s shares is not approved, XP will incorporate a slice equivalent to 55.7% of Modal’s share capital held by its controlling shareholders, who have already accepted the terms, and will guarantee minority shareholders Banco Modal the right to sell its stake under the same conditions”, explains the broker in the document.
O Modal Bank went public in June 2021, with a Initial Public Offering (IPO) which moved R$ 1 billion.
Since then, the share value of the Modal dropped 57.95%. Since the beginning of 2022, the paper has lost 28.64%.
Modal Results (MODL11) in 1Q22
In the first quarter of 2022, Banco Modal recorded a net profit adjusted amount of R$45.2 million. An increase of 88.4% compared to the same period in 2021.
THE Net Revenue was R$ 221.9 million, an increase of 78.3% compared to the first quarter of last year.
the result of financial intermediation and services reached R$ 206 million, a jump of 71.3% compared to the period January-March 2021.
XP Result (XPBR31) in 1Q22
XP, in turn, registered a net profit of R$987 million in the first quarter of 2022, an increase of 17% compared to the R$846 million recorded in the same period of 2021.
O earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted amount was R$ 1.19 billion, an increase of 14% in relation to the R$ 1.043 billion registered in the same period last year.
The assets in the custody of the XP totaled BRL 873 billion, 22% more than the amount recorded in the first quarter of 2021.