Grupo BTG Pactual will buy back some of its shares from the Ontario Teachers’ Pension Plan Board in an auction at the Brazilian stock exchange, Exame magazine reported without saying how it got the information.
Ten million units, a stake of about 4.7 percent, will be auctioned Monday in the block trade at an initial price of 15.50 reais ($4.73) apiece, the exchange said Friday. The exchange didn’t identify the seller, saying it wasn’t a controlling shareholder.
The block trade is scheduled to take place between 12:30 p.m. and 12:45 p.m. local time. Other sellers can join the auction.
BTG’s units traded at 15.68 reais at 12:24 p.m. in Sao Paulo, almost 30 percent above the record low they hit late last year when the bank’s founder was jailed in a corruption investigation. Many investors withdrew funds managed by BTG after the November arrest of then-Chief Executive Officer Andre Esteves for allegedly interfering with the testimony of a former Petroleo Brasileiro SA executive caught up in the probe. To maintain liquidity, the bank sold assets, including a stake in Swiss private bank BSI, and tapped a credit line from Brazil’s privately owned deposit-insurance fund.