Securities regulator approves BB's bid to increase control of Banco Patagonia

- Friday, August 19, 2011

Securities regulator approves BB's bid to increase control of Banco Patagonia

Argentine securities regulator CNV approved the public offering launched by federally controlled Brazilian bank Banco do Brasil (BB) to increase its stake in Banco Patagonia, the latter said in a press release and a filing with the Merval stock exchange in Buenos Aires.

BB already controls 51% of Patagonia, which it purchased in April last year after paying US$480mn - or US$1.31 a share - to the Argentine bank's former owners, the Stuart Milne brothers.

The Brazilian bank is now proposing to pay minority shareholders 5.12 pesos a share, which is equal to the US$1.314 a share initially proposed minus 0.3347 pesos from a dividend recently paid.

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Minority shareholders have 20 working days starting August 17 to decide if they accept BB's offer, according to the release.