Klabin SA, Latin America’s third-biggest paper maker by revenue, rose on speculation it may cancel a plan to sell additional shares after the rout in Brazil’s equity market.
The paper maker is concerned that it would have to sell more shares than it wants to raise the 1.7 billion reais ($749 million) it’s seeking, Sao Paulo-based newspaper Valor Economico reported today, citing people it didn’t identify. Klabin said June 11, when the stock was trading at 12.44 reais, that it wanted to sell shares to pay for building a new plant in the Brazilian state of Parana.
Klabin’s press office declined to comment when contacted by Bloomberg News. The company said in a regulatory filing today that it will only do the offering “if market conditions allow the preservation of shareholders’ best interests.” The Klabin and Lafer families hold 60 percent of the papermaker’s voting shares, according to information posted on the company’s website.
Klabin shares have dropped 15 percent this year, while the Ibovespa slumped 24 percent during that same period.
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