Tereos to List in Brazil, FO Expected

Tereos Internacional, the unit of the European-based Tereos Group formed from the combination of its Brazilian Acucar Guarani and European and Asian assets, has been approved to list shares on the Bovespa, and says it will start trading today. The company has been given a year to reach the 25% minimum float required by the Novo Mercado. “The reestablishment of the free float would mean a follow-on of roughly BRL590m, likely imposing a 19% dilution at current trading levels,” Itau says in a report, noting that the current free float stands at 10.55%. The shop notes that the size of the Brazil follow-on would also depend on the size of an expected Tereos Internacional offer in Paris. Tereos had initially planned to list in June.