Sul America Takes Control of Financial Specialist

Brazilian insurer Sul America has agreed to acquire the 83.27% of Sulacap that it does not own from Saspar for up to BRL285m ($141m), it says. The price for the stake in the financial services company represents a base price of BRL214m, which could be increased by up to BRL71m if certain milestones are met. Sulacap claims to be Brazil’s fourth-largest provider of titulos de capitalizacao, a Brazilian product that combines savings bonds with a lottery component. It has 8.9% of the market by revenue. Sulcap also owns 24.5% of of Caxia Capitalizacao, the market’s fifth largest player. The deal is subject to shareholder approval. Morgan Stanley advised Sul America, which is paying cash for the deal, according to a company official.