Brasil Brokers Rallies With BrasilAgro on Share Buyback Plans
Brasil Brokers (BBRK3) Participacoes SA and BrasilAgro Cia. Brasileira de Propriedades Agricolas rallied in Sao Paulo after the Brazilian real-estate companies said they plan to buy back shares.
Brasil Brokers, which provides services for property transactions, rose 2.4 percent to 5.56 reais at 1:57 p.m. in Sao Paulo, the biggest jump on a closing basis in three weeks. BrasilAgro, which buys and develops rural properties, added 2.7 percent to 9.79 reais for the biggest gain since Aug. 9.
BrasilAgro has dropped 13 percent from this year’s peak on June 19, while Brasil Brokers is down 23 percent from March 1, making buybacks more attractive for the companies. Rio de Janeiro-based Brasil Brokers plans to buy 10 million shares, or about 6 percent of stock outstanding, while BrasilAgro plans to repurchase as many as 3.51 million shares, or 10 percent of those outstanding.
Cyrela Brazil Realty (CYRE3) SA, Brazil’s biggest homebuilder by market value, also said today that it will buy back as much as 8.2 percent of shares outstanding. The stock declined 0.6 percent to 15.76 reais.
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