Without IPO, BRK Ambiental may consider M&A

Without IPO, BRK Ambiental may consider M&A

Company did not get investor appetite for minimum valuation price

BRK Ambiental should soon take the IPO off the street. According to three sources, the price asked by the company, a valuation between R$9 billion and R$9.5 billion, was not well accepted by investors at this sensitive time in the market. The company, which is a partnership between Brookfield and FI-FGTS, had officially reactivated the operation in May, with 10 coordinating banks.

BRK planned a primary and secondary offer last year and had already changed the operation to seek only cash resources, a way to make the offer more attractive, betting on business expansion. The IPO was a pressure especially from Caixa, then led by Pedro Guimarães.

The value of R$ 9 billion is assessed by the company on Caixa’s balance sheet – the 30% of the FI-FGTS is accounted for at R$ 2.7 billion, leaving little room for coordinators to negotiate price. For two sources, the market test may serve to make BRK shareholders start to consider a merger with a competing company, such as Aegea or Iguá.

Iguá’s shareholders, as Pipeline showed months ago, are interested in the matter. But there are no talks to that effect today, the source said. “Back then, the approach was not very well received. But it may have an open door again”, says an executive in the sector.

Corsan, also from the sanitation sector, suspended the initial offer last week. The transaction would lead to the privatization of the company, and also has a price floor established by the government.

Source: Value Pipeline

Related post

GetNet jumps more than 20% with offer to take it off the stock market 7 months after IPO

GetNet jumps more than 20% with offer to take…

Premium offered by the parent company was 30% in relation to the last closing price At shares gives GetNet jump more…
The ten years since the IPO of Facebook.  Will the network exist ten years from now?

The ten years since the IPO of Facebook. Will…

ten years ago the Facebook made its IPO and debuted in Nasdaq worth 100 billion dollars, registering the biggest launch among…
Méliuz: “I would do the IPO again 10 times”, says founder

Méliuz: “I would do the IPO again 10 times”,…

The company had revenue of R$90 million in the first quarter and is preparing for a new growth cycle with the…

Leave a Reply

Your email address will not be published.