BTG Pactual closes purchase of majority stake in PanAmericano

Monday, May 30, 2011

Brazilian investment bank BTG Pactual has finalized the acquisition of troubled midsize lender Banco PanAmericano, after completing the purchase of the shares of previous controlling groups Silvio Santos and BF Utilidades Domésticas, BTG said in a filing with securities regulator CVM and the Bovespa stock exchange.

Back in January, BTG announced it was acquiring 51% of the voting shares, or 37.6% of the overall ownership, for 450mn reais (US$282mn). BTG's move came after the revelation in November 2010 of faulty accounting on billions of reais worth of loan book sales.

The firm joined up with federally controlled savings bank Caixa Econômica Federal (CEF), which bought a 49% voting and 36.6% overall stake in PanAmericano in December 2009 for some 739mn reais.

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At the time of its purchase, BTG announced a partnership with CEF that included shared operational management, the possibility of CEF buying loans from PanAmericano and colaboration in terms of distribution platforms.

PanAmericano's woes also forced BTG and CEF to pledge an injection of 14bn reais into the bank to keep it afloat.

According to the filing, BTG Pactual and CEF will in the coming days file the necessary documentation to acquire all of PanAmericano's free floating preferred shares, following CVM resolution 361/02.