Oct. 14 (Bloomberg) -- Anhanguera Educacional Participacoes SA, a Brazilian administrator of private universities, fell the most in 11 months after announcing plans to sell as many as 20 million new voting shares.
Anhanguera shares fell 5 percent to 31.35 reais in Sao Paulo trading, the biggest decline since Nov. 4, 2009.
Anhanguera plans to convert each of its preferred shares into one voting stock. Shareholders, who will vote on the plan, will then be offered one voting share for each seven they already own, the company said in a regulatory filing today.
The Valinhos, Brazil-based company also said it plans to list its stock on the Novo Mercado section of the Sao Paulo exchange. Bank of America analysts, who estimated the sale at “roughly´´ 633 million reais ($381.6 million), said the proceeds should support future mergers and acquisitions deals.
“Anhanguera remains our preferred pick in Brazil education,” analysts Alexandre Pizano, Sara Gubins and Thomas Hupert wrote in a report e-mailed to clients today. They rate the stock “buy.”
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