Lupatech Inks Capitalization Deal with Shareholders

Troubled Brazilian oil services company Lupatech has finally agreed on a capitalization deal with its main shareholders, it says. Several weeks after announcing a BRL700m ($379.3m) capitalization plan, Brazilian development bank BNDES and Petros, the employee pension fund of Brazil’s oil company Petrobras, have agreed to put up BRL300m of the total capital sought. The remaining amount is to come from shareholders that will acquire additional 175m shares that Lupatech plans to issue at BRL4.00 a share. The price compares to the BRL4.56 previous closing. Lupatech shares closed at BRL 5.07 Monday. Officials at Lupatech could not immediately comment further. As part of the deal Lupatech will absorb the assets of San Antonio International, currently owned by GP Investments, which include drill rigs and well services divisions. Lupatech and GP have estimated an enterprise value of San Antonio Brasil at BRL150m, with BRL100m in debt and BRL50m in equity. The shareholders are also expected to revamp Lupatech’s administration. The company’s bonds were heard reaching levels of 70 late Monday, up from 58.