Feb. 20 (Bloomberg) -- Abril Educacao SA, a unit of publisher Grupo Abril, fell to a one-week low after Valor Economico reported that the company may sell shares to finance the acquisition of Wise Up, an English-language school.
Shares dropped 0.4 percent to 49.40 reais at the close of trading in Sao Paulo, the lowest level since Feb. 8. Trading volume was 1.8 times the three-month full-day average, according to data compiled by Bloomberg.
Abril agreed to pay 877 million reais ($447 million) for Wise Up on Feb. 8, or about 10 times earnings before interest, taxes, depreciation and amortization. The Sao Paulo-based company is preparing a share offering of 500 million reais to 600 million reais to finance the acquisition, Valor Economico reported without saying where it got the information.
The company said today in a regulatory filing in response to the newspaper’s report that it is constantly looking at alternatives including share sales.
Abril’s shares have doubled in the past year while the benchmark Bovespa index has fallen 15 percent.
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