Brazilian midsize lender ABC Brasil's board has approved a share buyback program for up to 3.8mn preferred shares, representing 10% of the total, the company said in separate filings with securities regulator CVM and São Paulo's BM&FBovespa stock exchange.
ABC Brasil - the local unit of Bahrain-based Arab Banking Corporation (ABC), itself 59% controlled by Libya's central bank - said the new share buyback is to "maximize value creation for our stakeholders" and that shares will be kept in treasury.
The bank has 365 days to complete the new program starting September 9, according to the filing.
Votorantim Corretora de Títulos e Valores, a unit of midsize lender Banco Votorantim; Itaú Corretora de Valores, the brokerage unit of Brazil's largest private sector bank, Itaú Unibanco (NYSE: ITUB); and the brokerage unit of local investment bank BTG Pactual will handle the repurchase.
São Paulo-based ABC Brasil mainly focuses on lending to corporations and midsize firms.