Abril Educacao SA, the education unit of Brazil’s Grupo Abril, rallied the most since 2011 after it said it may sell a stake in the company, fueling bets a more experienced manager will help increase profit.
Shares increased 6.8 percent to 28.50 reais at the close of trading in Sao Paulo, the biggest one-day jump since September 2011. It was the second-best performer on the BM&FBovespa Small Cap Index, which climbed 1.1 percent.
Abril’s profit trailed estimates in the past two years as it struggled to integrate English and high schools it acquired, said Mario Bernardes Junior, an analyst at Banco do Brasil SA. In 2013, the company announced acquisitions of language-school chain Wise Up, high schools Colegio Motivo and Sigma and a stake in MSTech, which develops school management software and distance learning systems.
“It would be very positive for Abril and its investors if a bigger group, with more knowledge of the education industry, took the lead and consolidated the smaller companies it bought,” Bernardes Junior said in a phone interview from Sao Paulo. “And we’ve seen foreign groups very interested in this sector in Brazil lately.”
Abril said in a regulatory filing today that its controlling shareholder hired investment banks Itau BBA and Grupo BTG Pactual to “analyze strategic opportunities,” including changes to its control.