Consolidation Wave Continues: Gafisa Acquires Tenda

Brazilian real estate company Gafisa said Monday it will buy a controlling stake in Tenda, a publicly traded low-income housing developer. Tenda shares closed up 25% at BRL4.69 after skyrocketing following the pre-opening announcement Monday. The move continues an ongoing trend of consolidation in Brazil’s homebuilding sector. Tenda will be merged with FIT, Gafisa’s low-income housing unit. Gafisa, a leading developer of high-end residential properties, will control 60% of Tenda’s shares and the target will continue to be listed on the Novo Mercado. Rothschild advised Gafisa while Banco Modal advised Tenda. More details on the deal are forthcoming in a call set for 1100 EST today.