Gafisa to Issue Equity to Complete Alphaville Buy

Brazilian homebuilder Gafisa plans to issue shares to help finance the BRL359m ($177m) purchase of the remaining 20% stake in its Alphaville Urbanismo unit, it says. It will offer 70.25m shares, representing BRL150m at Wednesday’s BRL2.13 close, the most recent closing price. The company says it is defining the steps of the process, and will give additional details about the purchase in the future. Gafisa bought 60% of the high-income housing unit in 2006, before adding another 20% in 2010. There had been concern the homebuilder lacked the funds to complete the acquisition, following a poor first quarter. The company turned down a buyout offer from Chicago real-estate magnate Sam Zell and Brazilian investment fund GP Investimentos in March.