Laep Is Selling Shares to Provide ‘Urgent’ Capital Injection
Laep Investments Ltd. (MILK11), a Hamilton, Bermuda-based private equity fund that invests in companies in Brazil, said it is selling shares because it needs an “urgent capital injection” to pay creditors and suppliers.
Laep plans to raise $10.2 million by issuing 40.1 million new class A shares at 25 cents apiece in the Luxembourg stock exchange, the company said in a regulatory filing yesterday. Laep also trades Brazilian depositary receipts, or BDRs, in Sao Paulo.
The share sale will “raise capital in the face of the financial situation of the company, which needs an urgent capital injection,” Laep said in the statement. Proceeds will be used to pay creditors and suppliers, the company said.
Laep indirectly owns a 24.3 percent stake in dairy maker LBR-Lacteos Brasil SA, which holds the rights to the Parmalat brand in Brazil. The private equity fund also controls Daslu, once Brazil’s biggest luxury department store, which filed for bankruptcy protection in 2010 amid tax-evasion charges.
Laep BDRs slid 2.1 percent to 46 centavos at 10:18 a.m. in Sao Paulo today, after earlier dropping as much as 4.3 percent. The stock has plunged 88 percent in the past year.
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