Brazil’s Agra Clinches Abyara Stake

In a move that further consolidates Brazilian homebuilding sector, Agra says it will acquire alongside its co-investor Veromonte Participacoes, a 62.13% stake in competitor Abyara. The all share deal is estimated at some BRL38m. IPU Participacoes, the venture 70% held by Veromonte and 30% by Agra, will buy 31.6m shares in Abyara at BRL1.20 per share to own 62.13% of the target. “This represents a sharp discount (41%) to Abyara’s current share price,” according to Itau Securities. Abyara has also had to restructure its debt with local banks. Of the company’s BRL430m debt load, BRL300m come due this year. The plan is to lower that amount to some BRL180m and extend duration.