Machado Meyer Advogados has helped a division of Brazilian state-owned bank Caixa Econômica Federal divest its remaining stake in Banco Pan for US$660 million.

The buyer – Brazilian bank BTG Pactual – relied on in-house counsel for the deal, which was signed on 5 April.

BTG Pactual snapped up a 49% voting stake in Banco Pan from Caixa Participações (Caixapar) – an interest that accounts for 27% of the target company’s capital. The Brazilian buyer will pay 11.42 reais (US$2.02) for each Banco Pan share.

With the transaction, BTG Pactual increases its interest in Banco Pan from 45% to 72% and now owns all the voting rights in the company.

BTG Pactual – now the majority owner of Banco Pan – aims to expand its digital offering with the acquisition. It also intends to diversify its portfolio of services by creating a new range of products that appeal to a wider client base, from low-income customers to high-earning individuals.

The deal marks the final stage of Caixapar’s divestment of Banco Pan. In September, it sold shares in the Brazilian bank for 743 million reais (US$140 million) through a secondary public offering. It had already divested another stake in Banco Pan through a public offering back in 2019. The seller had initially intended to sell its remaining shares in Banco Pan through another public bid but opted to divest to a private investor due to heightened market volatility amid the covid-19 pandemic.

Caixapar carried out the divestiture to increase liquidity. Overall, it has made a net profit of some 2 billion reais (US$354 million) through its divestments of Banco Pan.

Banco Pan offers credit cards, loans and online banking accounts to low-income individuals. It serves some seven million customers and has a credit portfolio of 29 billion reais (US$5 billion).

Founded in 1983, BTG Pactual traditionally focused on wealth management and investment banking services but has since branched out to offer a more inclusive range of financial services. It is the largest investment bank in Latin America with assets worth US$73 billion.

Brasília-headquartered Caixa Econômica Federal is one of the largest government-owned banks in Latin America.

Counsel to Caixa Participações

Machado Meyer Advogados: Partners Jose Virgilio Lopes Enei and Thiago Spercel, and associates Gabriel Abdallah Mundim, Antonio Carlos Amorim Castello Branco, Leonardo Sabongi Lavinas Guimarães and Victor Goulart Lazarini

Counsel to BTG Pactual

In-house counsel – Bruno Duque


(Latin Lawyer - 13.04.2021)