Odontoprev Rallies in Sao Paulo on Dental Plan Joint VentureDenyse Godoy
Odontoprev SA, a Brazilian dental benefits company, soared the most in two weeks after signing a deal with Banco do Brasil SA and BB Seguridade Participacoes SA to create a joint venture to sell dental plans.
The shares rose 2.9 percent to 9.92 reais at the close in Sao Paulo, the biggest one-day gain since May 28. They surged as much as 9 percent intraday. The benchmark Ibovespa retreated 3 percent.
Odontoprev will have a 25.01 percent stake in the new company, to be named Brasildental Operadora de Planos Odontologicos SA, according to a regulatory filing from the dental benefits company today. Banco do Brasil and its subsidiary will hold the remaining 74.99 percent. About 40 percent to 50 percent of Odontoprev’s six million clients came to the company since 2009 through a partnership with Banco Bradesco SA, Chief Executive Officer Randal Zanetti said.
“The deal with Banco do Brasil has the potential to bring as many clients as the partnership with Bradesco did,” Zanetti said in a phone interview from Sao Paulo.
The main focus of the new venture, Brasildental, will be selling to retail customers and small companies, according to the CEO.
The press offices of Banco do Brasil and BB Seguridade didn’t respond to phone calls seeking comment.
Odontoprev’s profits have trailed analysts’ estimates in six of the past eight quarters, data compiled by Bloomberg show. The shares declined 7.5 percent this year, while the Ibovespa dropped 18 percent.