SAO PAULO (Reuters) - Brazilian state lender Banco do Brasil SA (BBAS3.SA) is readying a secondary share offering that may raise up to 7.9 billion reais ($2 billion), three people familiar with the matter said.
One of the sources, who spoke on condition of anonymity because the transaction has not been announced, said the banks are planning to price the offering by the end of September.
The investment banking units of Itau Unibanco Holding SA (ITUB4.SA), XP Investmentos SA, Caixa Economica Federal, Credit Suisse Group AG (CSGN.S), JPMorgan Chase & Co (JPM.N) and Banco do Brasil have been hired to manage the deal, sources said.
State bank Caixa Economica Federal has said it is looking to sell a 2.4% stake in Banco do Brasil held by a workers severance fund, according to a Tuesday securities filing. The transaction could raise nearly 3.1 billion reais for the FI-FGTS fund, which Caixa manages, based on Monday’s closing share price.
The Brazilian government and Banco do Brasil itself may also join the share offering, according to sources, which could more than double the size of the transaction.
The bank has roughly 3 billion reais worth of its own shares in treasury, which it has considered selling, although sources say a divestiture has not yet been approved internally.
Brazil’s government also has a 50.7% stake in the bank, which it has considered reducing, without giving up a majority of shares.
Reporting by Carolina Mandl and Tatiana Bautzer; editing by Jonathan Oatis