Brasil Pharma SA (BPHA3) surged the most since 2011 as controlling shareholder Grupo BTG Pactual (BBTG11) pledged to make up the difference if other investors fail to buy all the stock in a planned 400 million-real ($182 million) sale.
The pharmacy chain’s shares rallied 8 percent to 3.80 reais at the close of trading in Sao Paulo. It was the second-best performance on the BM&FBovespa Small Cap index, which was little changed.
Brasil Pharma said in a regulatory filing yesterday it plans to sell shares for 3.75 reais each to its current shareholders. BTG Pactual agreed to buy all remaining shares if demand for the securities falls short of the offering’s target, according to the filing.
The company plans to sell the stock to “strengthen its cash position,” according to the filing. The proposal will be put to a vote in a shareholder meeting scheduled for April 25. Brasil Pharma is down 44 percent this year, while the small cap index has dropped 5.9 percent.
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