Brookfield Rises in Sao Paulo as Controller Considers Delisting

Brookfield Incorporacoes SA (BISA3), Brazil’s worst-performing homebuilder in the past year, climbed to a three-month high after its controlling shareholder said it may buy back its outstanding shares and delist the stock.

The shares gained 7.3 percent to 1.33 reais at 12:24 p.m. in Sao Paulo, after earlier climbing 15 percent. It was the best performer on the Ibovespa, which fell 0.3 percent.

BRB Participacoes, the homebuilder’s controlling shareholder, is “analyzing strategic alternatives” including delisting the stock, Brookfield said in a regulatory filing today. BRB is also considering a capital increase through a new share sale and expects to make a decision within 120 days, according to the filing.

“If they’re thinking about taking the company private, it’s because they think it’s worth doing so at the current price,” Sandro Fernandes, a trader at the brokerage firm Geraldo Correa, said in a telephone interview from Belo Horizonte, Brazil. ’’It could be the first step for a merger, or sale of the company. The stock will now trade on speculation, until we have the decision.’’

Brookfield has lost 62 percent in the past 12 months, the worst performance on the BM&FBovespa Real Estate Index.

The stock jumped 19 percent on Jan. 23 after Brazilian website InfoMoney said the company may be delisted, without saying how it got the information.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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