BHG Defines FO

Brazil Hospitality Group (BHG) has indicated it plans to sell 21.6m primary shares in its equity follow-on, meaning a BRL452m ($226m) target based on Friday’s BRL20.92 closing price. The total assumes a 15% greenshoe. The tourism-related developer plans to begin meeting investors April 8, ahead of an April 18 pricing, according to a prospectus. BHG plans to use 80% of the proceeds for hotel acquisitions, 10% for greenfield projects and 10% for improvements to existing hotels and for working capital. BTG Pactual, Bradesco, Espirito Santo, Goldman Sachs and Itau are managing.