Veremonte, Agra Purchase Klabin Segall

Distressed real estate developer Klabin Segall is being sold for around BRL112m in equity value to Veremonte Holdings, a real estate company run by Spanish developer Enrique Banuelos, and Agra Empreendimentos, a local developer. Klabin Segall has BRL476.0m in net debt, and its market cap stood at BRL144.5m prior to the deal’s closure late Monday. Veremonte and Agra will form a new holdco owning 57.8% of Klabin Segall’s shares. Both will lend BRL10m each in the short term, while Veremonte will inject BRL100m in equity. Veremonte will control 65% of the target’s new holdco. “Despite the heavy dilution, in our view the deal was probably the best solution for Klabin Segall,” says Itau Securities. It notes an improvement in the capital structure as well as relief in the cash position. The shop says the transaction was also cheap for Agra, especially, and required minimal cash outlay for the developer. JPMorgan advised Klabin Segall on the deal. No other advisors are heard to have been involved on the other side.