Vitru agrees to promote 10.6% to Crescera for R$300 million and goals to extend capital

Under the terms of the agreement, the acquisition will take place through the subscription of approximately 3.6 million new shares of Vitru, shares that will be subject to a “lock-up”, that is, they cannot be sold, until November 20, 2023

The Brazilian education holding company Vitru, listed in the United States, announced on Tuesday night an investment agreement in which the manager Crescera will buy about 10.6% of the company for 300 million reais.

Under the terms of the agreement, the acquisition will take place through the subscription of approximately 3.6 million new shares of Vitru, shares that will be subject to a “lock-up”, that is, they cannot be sold, until November 20, 2023.

Vitru co-presidents Pedro Jorge Graça and William de Matos Silva said in a statement that the company has been working since the completion of the Unicesumar acquisition earlier this year to raise additional capital – ideally from investors with industry experience – to accelerate its deleveraging process.

“Crescent is a natural partner for Vitru, given its proven expertise in the education sector in Brazil through its investments in businesses such as Abril Educação, Afya, Alura and Ânima Educação,” they said.

The deal, which still depends on conditions including approval from the antitrust body Cade, is expected to close in the fourth quarter of 2022.

Vitru, owner of Uniasselvi and Unicesumar, also said it intends to carry out an additional capital increase of between 100 million and 125 million reais, giving current shareholders the right to subscribe for new shares at the dollar price paid by Crescera.

The holding company wants to use the funds raised with Crescera’s investment and the potential offer to pay debts.

Crescera may also participate in the additional capital increase, should it occur. Thus, the manager’s final share in Vitru should be between 10.2% to 13.7% depending on the conditions and its participation in the potential operation, which should be launched in October, according to Vitru.

The holding company will still disclose the terms of the potential capital increase, but has already said that current shareholders should have the right to subscribe for 1 share for every 6 they already hold.

Source: Época Negócios