Banco do Brasil expects to receive three offers for Banco Patagonia stake

Banco do Brasil expects to receive three non-binding offers this month for some or all of its stake in Argentina’s Banco Patagonia, LatinFinance understands.

BBVA, Banco Macro and Banco Galicia are understood to be preparing bids, according to sources familiar with the sale.

The non-binding offers value Banco Patagonia at approximately $1.2bn, less than the $1.9bn to $2bn that Banco do Brasil had expected, one M&A source said.

Banco do Brasil, which holds a 59% stake in Patagonia, had considered a “dual-track sale” with a direct divestment from one party and a public equity offering, another M&A source said.

Now the Brazilian bank and the minority stakeholders in Banco Patagonia prefer a direct sale over the two-part option, both sources said.

JPMorgan is heard to be advising Banco Patagonia on the sale, but a spokesperson for the bank declined to comment. Sources at Banco Patagonia also declined to comment.