Banco BTG Pactual SA, the Brazilian investment bank led by billionaire Andre Esteves, agreed to acquire Bolsa y Renta SA, Colombia’s biggest brokerage by trading volume, for $52 million.
“This is the last acquisition we will do in Latin America, the rest will be organic growth,” Chief Operating Officer Roberto Sallouti said in a telephone interview yesterday. BTG also plans to seek a bank license in Chile, he said.
The move culminates a push by the Sao Paulo-based bank to expand beyond Brazil’s borders and become a leading investment bank in Latin America. BTG agreed in February to buy Santiago-based Celfin Capital SA for $486 million. Celfin is Chile’s biggest brokerage and the third-largest in Peru, Sallouti said.
With the acquisition of Bolsa y Renta, which is subject to regulatory approval in Brazil and Colombia, BTG aims to bring to Colombia all the lines of business it has in Brazil, including investment banking. Celfin, which has a Colombian brokerage that focuses on international clients, is a “perfect combination” with Bolsa y Renta, which has mainly local clients, Sallouti said.
Bolsa y Renta’s shareholders will also receive a 0.25 percent stake in Banco BTG Pactual and its private-equity arm, BTG Investments LP.
In April, BTG hired Javier Artigas, former chief of strategic planning at Bolsa Mexicana de Valores SAB, the Mexican stock exchange operator, to lead the bank’s operations there.
Bolsa y Renta has $2.57 billion of wealth management assets and $874 million of assets under management. BTG has 130.3 billion reais ($63.4 billion) of assets under management and 42 billion reais of wealth-management assets.
BTG went public in April and raised 3.66 billion reais in the biggest initial public offering for an investment bank in two years. The shares, which were priced at 31.25 in the IPO, gained 0.7 percent to 26.29 reais in Sao Paulo trading at 10:07 a.m.