By Brazil Stock Guide – Banco de Brasília (BVMF: BSLI3) said it expects to more than double its profits within four years after agreeing to acquire Banco Master. According to a filing with Brazil’s securities regulator (CVM), cited by Estadão’s E-Investidor, the business plan for the combined entity projects net income of 2.7 billion reais ($520 million) by 2029.
The forecast maps a steady rise in earnings: 1.25 billion reais in 2025, 1.25 billion reais in 2026, 2.38 billion reais in 2027 and 2.64 billion reais in 2028, reaching 2.70 billion reais in 2029. “It is important to highlight that the business plan should not be interpreted as guidance by BRB. The financial projections reflect internal assumptions and estimates based on current market conditions and projected macroeconomic scenarios,” the bank said.
Under the terms of the deal, BRB (BVMF: BSLI3) will pay 75% of Banco Master’s consolidated net equity, based on audited statements adjusted for asset write-offs. Payment will be split between an upfront 50% cash settlement and up to 50% held in an escrow account for six years to cover potential indemnities. “If the amount retained is less than 50%, the difference will be paid on the second anniversary of the closing date,” BRB noted.
The transaction remains subject to approval by the Central Bank of Brazil. Steps ahead include the completion of Banco Master’s corporate reorganization, a confirmatory due diligence review of assets and liabilities by BRB, and an independent audit at closing. The lender said it will also call an extraordinary general meeting of shareholders to ratify the operation.
Leave a Reply