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Shelves in library
Today’s corporate theme of the conference is the purchase of the Laureate Group in Brazil for Ser Educacional, for R $ 4 billion. The payment will be made in cash in shares, the cash portion being R $ 1.7 billion. Additionally, Laureate will receive 44% of Ser’s shares.
According to a statement, the transaction will increase the number of Ser students to 452,000. In the earnings release for the second quarter of 2020, the company reported having a total student base of 183,500 students in the first semester. In other words, the acquisition will more than double the number of students.
In addition, Azul received a formal proposal for financial support to the company on Sunday from BNDES and a private bank union. According to O Globo, the offer provides for at least R $ 2 billion in financing in the market, with a participation of the state company of up to 60% of the amount.
Also noteworthy is the proposal to add PDG’s judicial reorganization plan and the extension of validity of Totvs’ proposal by Linx. Bradesco BBI raised the target price of Oi common shares from R $ 2.10 to R $ 3.10 for 2021 after the approval of the amendment to the judicial recovery plan.
Check out the highlights:
Bradesco BBI updated the target price of Oi to R $ 3.10 in 2021, compared to a previous forecast of R $ 2.10, due to the approval of the company’s judicial reorganization plan. The bank highlighted that Oi is its Top Pick among telecommunications companies in Latin America. The bank attributed the change to the new plan values, the Globenet contract and PIS / Cofins earnings.
Additionally, BBI said that its positive outlook for the company is based on a higher-than-expected performance of fiber-to-the-home (FTTH) technology.
“We see a more sustainable path for Oi, focused primarily on FTTH development, along with reduced leverage (net debt / Ebitda) following completion of the asset sale.” BBI believes that Oi should start attracting more investors focused on the medium and long term.
Being educational (SEER3)
On Sunday night, Ser Educacional announced the purchase of the Laureate Group in Brazil for R $ 4 billion. The payment will be made in cash in shares, the cash portion being R $ 1.7 billion. Additionally, Laureate will receive 44% of Ser’s shares.
According to a statement, the transaction will increase the number of Ser students to 452,000. In the earnings release for the second quarter of 2020, the company reported having a total student base of 183,500 students in the first semester. In other words, the acquisition will more than double the number of students.
Laureate is an American company that owns companies in Brazil, such as Anhembi Morumbi and FMU. In the 12-month period until March 31, 2020, the company’s assets had a net income of R $ 2.2 billion and an adjusted EBITDA of R $ 413 million. The total number of students enrolled is 267 thousand. The net debt amounts to R $ 623.3 million.
The contract states that Laureate has the right to seek more advantageous transactions with third parties until October 13, 2020. In this case, Ser can match the proposal submitted by another company. Otherwise, Laureate may close the transaction, but will have to pay a fine of R $ 180 million to Ser.
Controller Janguiê Diniz will have 32.1% of Ser’s capital and will continue to be the controlling shareholder. This is because Laureate’s voting rights will be equivalent to only 7.5% of Ser’s capital. The transaction also provides for the issuance of ADRs in the United States.
According to Morgan Stanley, Ser is paying 10 times the EV (market value) / Ebitda of 2020, slightly above the bank’s estimate, which was R $ 3.6 billion or 9 times. However, the figure is almost half of what was considered reasonable before Covid ($ 1.3 billion).
In a report, the bank said the deal is bold and potentially transformative for Ser, who can become a relevant national player, with strong brands in different regions of the country. “In our opinion, the agreement may activate Cade’s restrictions in the cities of Natal and João Pessoa, but nothing that could stop the deal.”
The bank believes Ser can raise Laureate’s Ebitda margins from 15% to 18% to 25% to 30% in a few years. Additionally, Morgan believes that the deal could be closed in 8 to 14 months.
Azul received on Sunday a formal proposal for financial support for the company from BNDES and a union of private banks. According to O Globo, the offer plans to raise at least R $ 2 billion in the market, with a participation of the state company of up to 60% of the amount.
The proposal has been negotiated since March by the airline with the government due to the financial impact of the pandemic on the sector, and is still subject to final approvals, the newspaper reported. The financial instrument would combine the issuance of debentures and subscription warrants.
BNDESPar will be the anchor investor of the offer and may subscribe up to 60%. The private banks involved in the operation would enter 10%. The remaining amount would be obtained from the market.
PDG proposed an amendment to its judicial reorganization plan. According to the company, the objective of the modification is to readjust the payment of PDG’s labor creditors to the economic and financial perspectives of the company.
PDG claims there has been a “significant” increase in requests for ratings from labor creditors in recent months. Therefore, payment on the expected terms would cause an imbalance in cash flow. The adjustment of the judicial reorganization plan will be evaluated by the general meeting of creditors, which has not yet been called.
Totvs has extended the validity of the proposed business combination with Linx for 30 days. Thus, the proposal is valid until October 13, 2020.
The company also confirmed to the advisers of the independent directors of Linx that it agreed with the prorated correction of the portion in national currency to be paid per Linx share, in the amount of R $ 6.20, based on the variation of the CDI, of the 6th month counted from the population presented by TOTVS.
Negotiations for the privatization of Eletrobras have stopped again in Congress and the agenda should be for 2021, according to a report from Valor. The government’s strategy of passing the start of the paperwork to the Senate has cooled in recent weeks, after Mayor Rodrigo Maia told government interlocutors and Senate leaders that he would only vote on the bill after the legislative order in February. Next year, according to the same newspaper, without specifying how he obtained the information.
With that, Davi Alcolumbre, president of the Senate, began to defend that he no longer saw sense in the analysis of the matter, since he could expose senators on the eve of a municipal election,
according to value.
Saint Martin (SMTO3)
Morgan Stanley lowered the recommendation for the St. Martin stock from overweight to equal weight.
BNDES is due to leave Vale this year, according to São Paulo state. After conducting the multi-million dollar auction on Vale’s stock exchange, for the amount of R $ 7.2 billion, the development bank began to sell its participating debentures. According to the newspaper, BNDES can still sell the rest of its shares in Vale, as they will be announced after the miner’s shareholder agreement ends, which occurs on November 9.
Still regarding the mining company, Credit Suisse said that Vale has already reached its goal of producing 1 million tonnes of iron ore per day, which should be enough to reach the annual guidance of 310 million to 330 million tonnes.
The company also said that current iron ore prices are unsustainable and prices are expected to come under pressure by year-end. In terms of costs, the company expects to reach US $ 14.5 per ton in the second half of 2020, compared to US $ 17.1 per ton in the second quarter.
According to the bank, the resumption of Vale’s dividend policy announced last week was due to the perception that the company already had a sufficient amount of funds for repairs related to Brumadinho, and that therefore it would have obtained the right to distribute money. to shareholders. Also, low leverage, 0.3 times net debt / Ebitda and net debt below target (US $ 10 billion) supported the decision.
Credit maintained Outperform’s rating for the company and said the company is undervalued (3.4 times EV / Ebitda) compared to competitors, who trade around 5.4 times. According to the bank, the mining company’s dividend yield could reach at least 6% in 2021.
Petrobras announced the start of the binding phase on the sale of its stake in five electricity generating companies: Brasympe Energia, Energética Suape II, Termoelétrica Potiguar, Companhia Energética Manauara and Brentech Energia.
According to the company, potential buyers classified for the binding phase will receive an invitation letter with detailed instructions on the divestment process.
The state company also reported the start of the binding phase regarding the sale of part of its stake in the exploratory blocks, belonging to ES-M596_R11, ES-M-598_R11, ES-M-671_R11, ES-M-673_R11 and ES-M- 743_R11, located in the Espírito Santo Basin.
BR Distribuidora (BRDT3)
BR Distribuidora reported that Cade recommended the expropriation of GRU Airport, BR Distribuidora, Raízen and AirBP for alleged discrimination in the aviation kerosene market at Guarulhos Airport.
In a statement, BR Distribuidora said that it is guided by the best commercial and competitive practices, demanding the same behavior from its commercial partners and workforce. In this context, the Company informs that it will adopt all the necessary means for its defense ”, she said.
Odontoprev (ODPV3)
Odontoprev approved the payment of Interest on Equity of R $ 13.304 million, corresponding to R $ 0.0250832 per share, to be paid on October 7, 2020. The shares of the company will be traded ex right to interest on equity at September 17, 2020, inclusive.
Locate (RENT3)
Localiza announced the payment of interest on equity on September 15, 2020, for the total amount of R $ 66.953 million, equivalent to R $ 0.089006724 per share. The payment date is based on the share position of March 13, 2020, and as of March 16, 2020, the Company’s shares are traded “ex” of this interest.
Traffic on CCR roads increased 3.3% in the week of September 4-10, 2020 compared to the same period last year. In the accumulated result of the year until September 10, traffic fell 5.3% in the annual comparison.
Itaú Unibanco (ITUB4)
Itaú Unibanco bought 5,558,780,153 shares issued by Itaú CorpBanca, increasing its stake in the company from 38.14% to approximately 39.22%. The transaction was carried out through the subsidiary ITB Holding Brasil Participações and corresponded to R $ 228 million.
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