PDG Rises After Approving Investment Offer From Vinci Partners
PDG Realty SA Empreendimentos e Participacoes, Brazil’s biggest homebuilder, rose the most in a week after saying it approved a capital injection of 800 million reais ($389 million) from shareholder Vinci Partners Investimentos Ltda.
Shares gained 1.8 percent to 3.33 reais at the close in Sao Paulo while the BM&FBovespa Real Estate Index slipped 0.8 percent. The benchmark Bovespa index was little changed.
PDG said today in a regulatory filing its board “understands that a capitalization of the company at this moment will strongly benefit it” as the homebuilder has the intention of adopting a more conservative strategy toward a “possibly adverse scenario for credit and signs of a slowdown in the Brazilian economy.”
Vinci Partners proposed issuing warrants that may be convertible into shares and bonds.
PDG has retreated 44 percent this year while the Bovespa slid 5.9 percent.
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org