Equifax Proposes to Delist Boa Vista with a 70% premium
Equifax, https://en.wikipedia.org/wiki/Equifaxone of the largest credit bureaus in the United States, put on a show tonight to buy Boa Vista Serviços, trying to get the credit bureau off the stock exchange with a 70% bonus.
Equifax, which already owns 10% of Boa Vista, is offering three options to the company’s shareholders: receive US$8 for cash; Or a mix of cash and cash bonds from Equifax, listed on the New York Stock Exchange; Or a mix of Equifax Brasil and Equifax BDRS or Cash.
The deal tries to take Boa Vista off the exchange at a lower price than the public subscription, which was published at 12.20 Brazilian Riyals. The stock has already fallen more than 60% since the offering – after the widespread sell-off on the stock exchange – and is trading today at a price of 4.79 Brazilian, at a value of 2.55 billion Brazilian riyals ( or $480 million at today’s exchange rate).
According to Boa Vista, the deal is already backed by the Assembled Trade Association (ACSP), the company’s largest shareholder with around 30% of the capital.
As part of the agreement, CPHA agreed not to compete with the new company for 15 years, as well as providing access to its data and consulting services and organizational services for that period.
Equifax Show may attract competitors like Serasa Experian and B3, which have synergy with the original. The TMG Special Stock Fund, Boa Vista’s second largest shareholder with 21% stake, offered its share for sale months ago at a much higher price than Equifax’s offer, sources familiar with with the case, said the Brazil Journal.
Boa Vista was established over 60 years ago as SCPC (Central Credit Protection Service), and it maintains a database of payment date information for individuals and businesses.
The company has data on over 282 million CPFs and CNPJs and receives 12 million inquiries per day from 150,000 customers.
These data are mainly used in the credit analysis of financial institutions.
Equifax is headquartered in Atlanta and competes with companies such as Experian and TransUnion. The company is valued at $23.5 billion on the New York Stock Exchange.
Laplas Finance provides advice for ACSP.
Itaú BBA advises the Talaat Mustafa group, which has not yet commented on the show.
Bank of America recommends Equifax.
