BMG Acquiring Banco Schahin

Brazilian bank BMG is acquiring Banco Schahin, according to bankers away from the deal. According to one New York-based banker not involved in the deal, the BRL250m transaction is “basically a done deal” aside from some due diligence concerns at the shareholder level. BMG had BRL11.5bn in assets at the end of 2010, while Schahin had BRL2.8bn. A Sao Paulo-based banker away from the deal says the transaction may have been facilitated by the FGC, the Brazilian agency responsible for insuring deposits. Banco Schahin could not be reached for comment. BMG declines to comment. Brazilian regulators recently approved a FIDC transaction for Banco Schahin. The BRL300m 2-year fund is a securitization of the bank’s personal loans, and will pay 120% of the DI rate. BMG had BRL11.5bn in assets at the end of 2010, while Schahin had BRL2.8bn.