Multiplan to repurchase shares from Ontario Teachers', while Peres family buys remaining stake in deal
Ontario Teachers’ Pension Plan, one of Canada’s largest institutional investors, is planning to sell its entire stake in Brazilian mall operator Multiplan Empreendimentos Imobiliarios SA.
The Canadian fund initially invested in the company in 2006. According to BNN Bloomberg, Multiplan has agreed to repurchase approximately 90 million shares from the pension plan, with the deal awaiting approval from shareholders.
The remaining 21.2 million shares will be bought by the Peres family, who are the company's founders and controlling shareholders.
Ontario Teachers’ is expected to earn about R$2.47bn (US$450m) from this sale. Despite concerns that the share buyback could increase Multiplan’s leverage ratio, the company plans to continue its expansion initiatives.
BTG Pactual’s Gustavo Cambauva explained in a client note that the operator’s spending plans remain intact.
During a conference call with analysts, Multiplan’s CEO, Eduardo Kaminitz Peres, stated that the company is “mulling options to reduce its debt level and considering some asset sales.”
He also clarified that while they want to remain open to other opportunities, the company is not actively seeking another reference shareholder.
Ontario Teachers’ began divesting its shares in April through a block trade handled by Goldman Sachs’ brokerage firm. Since Multiplan went public in 2007, its shares have risen by 221 percent, compared to a 145 percent increase in Brazil’s Ibovespa index.
The shareholders’ meeting to approve the repurchase is scheduled for October 21, as outlined in Multiplan’s filing.
