North American Equifax proposes enterprise mixture with Boa Vista
Financial services and credit company Boa Vista said on Sunday it had received a proposal from US-based Equifax and its Equifax do Brasil unit for a business combination, according to a material fact.
Under the proposal, Boa Vista shareholders would have three options: receive 8 reais per share in cash; a combination of cash and Equifax BDRs; or a combination of Equifax do Brasil common stock and Equifax cash or BDRs.
BDRs are certificates traded on the Brazilian stock exchange that represent shares of foreign companies listed outside the country.
The proposed business combination is supported by the São Paulo Commercial Association (ACSP), Boa Vista’s largest shareholder with 30.04% of the company, the document said.
Shares in Boa Vista rose more than 13% on Friday to close at 4.79 reais apiece. Thus, the value of 8 reais per security represents a premium of 67% compared to the last closing.
Boa Vista said its board of directors authorized the hiring of financial and legal advisors to help analyze the transaction.
If the deal goes through, ACSP would have to sign a 15-year non-compete agreement with Boa Vista, according to the Material Fact.