Sunday, 20 Jun 2021

Brazil's Banco Inter pops on StoneCo stake, Nasdaq plan

SAO PAULO (Reuters) -Banco Inter SA’s publicly traded units soared in early trading on Monday after payments company StoneCo Ltd said it would buy a stake of up to 4.99% in the Brazilian online bank, which separately announced plans for a Nasdaq listing.

Banco Inter units were up 16% in Sao Paulo, at 206.60 reais, its second largest daily rise in a year, according to Eikon data. The bank’s market capitalization reached 45.6 billion reais ($8.6 billion).

Brazilian payments company StoneCo said it planned to spend $471 million on new shares in Banco Inter, which is also backed by SoftBank Group Corp.

StoneCo will pay 57.84 reais ($10.85) per Banco Inter share.

In a separate filing, Banco Inter also said it is close to listing its shares on Nasdaq as Inter Platform.

After the investment, StoneCo said both companies will explore further partnerships with each other’s client base. StoneCo said in a statement the agreement will leverage product and payment technology capabilities for both companies.

The agreement expands the number of financial products Banco Inter can offer to clients, bolstering its competitive profile against larger Brazilian banks. The agreement also turns Stone, which is backed by large U.S. investors such as Warren Buffett’s Berkshire Hathaway, into a key shareholder in Inter. StoneCo will have the right of first refusal in the case of change of control of Banco Inter.

($1 = 5.3296 reais)

($1 = 5.3203 reais)

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