Brazil’s leading investment bank, BTG Pactual, is to pay R$450 million for the acquisition of 100% of the shares in Banco PanAmericano S.A. The acquisition will give BTG Pactual a 37.64% stake in PanAmericano, 51% of the voting shares and 21.97% of the non-voting shares. PanAmericano is held by Grupo Silvio Santos.

Currently, Grupo BTG Pactual has net equity of approximately R$7.3 billion, while Banco BTG Pactual has R$5.6 billion. The deal will strengthen the partnership between BTG Pactual and Caixa Econômica Federal, Brazil’s Federal Savings Bank.

Under the investment, BTG Pactual and Caixa Econômica Federal signed a shareholders' agreement under which Caixa has agreed to maintain its 36.56% stake in PanAmericano’s total capital stock.

Post the acquisition, BTG Pactual will commence a tender offer to purchase the shares of PanAmericano held by its minority shareholders on the same terms offered to the controlling stockholder, at a price of R$4.89 per share. Caixa reiterated its commitment to preserve its strategic alliance with PanAmericano by signing a cooperation agreement under which Caixa has agreed to acquire credits originated by, and invest in deposits issued by, PanAmericano, helping to support PanAmericano’s future business.

PanAmericano and Caixa will also expand their financial product/service offering range, leveraging on their distribution channels. André Esteves, the CEO of BTG Pactual said the acquisition represents the creation of a fourth business line for BTG Pactual. PanAmericano will be an independent platform for distributing products and credit to the retail banking market.

BTG Pactual’s three current business areas include Investment Banking, Asset Management and Wealth Management.

Maria Fernanda Ramos Coelho, CEO of Caixa Econômica Federal, noted that Caixa, with its extensive retail network and long-standing retail tradition, and BTG Pactual are synergic partners. This partnership creates enormous potential to originate credit and create and distribute products, he added.

From Caixa’s perspective, the partnership with BTG Pactual will maintain the equity conditions that led it to acquire 49% of PanAmericano's voting shares, a decision firmly grounded on the evidence of synergies and common business potential between the two, while providing continuity to Caixa’s strategy to expand further into the Brazilian credit market.

José Luiz Acar Pedro, a current BTG Pactual partner, will be the new CEO of PanAmericano, which will operate independently from BTG Pactual. PanAmericano is focused on consumer finance and the middle market. The acquisition is subject to the standard conditions for finalizing the deal, including approval by the Brazilian Central Bank.

9 Feb 2011.