Helbor Board Backs Bid to Leave Stock Market
Brazilian developer Helbor's board backed HBR Realty's share-swap bid, worth about US$0.50 a share, to leave B3. The auction is 28 October. The post Helbor Board Backs Bid to Leave Stock Market appeared first on The Rio Times .
The Helbor board announced on October 20th that shareholders should accept HBR Realty's proposal to buy the company and remove it from the stock market. Helbor's stock is valued at R$2.52 per share, which translates to approximately US$0.50 (at a rate of R$5.02 per dollar). The offer involves shareholders swapping their Helbor shares for HBR Realty shares, with each Helbor share being exchanged for 0.81553398 HBR shares.
The auction will take place on October 28th at 2 p.m. ET (3 p.m. Brasilia time) on B3's electronic platform. However, the deal will only proceed if HBR acquires control of Helbor and a majority of the shareholders eligible to participate approve the swap. The controlling family owns both companies, which makes this deal a test of how minority investors are treated in Brazil's economy when a controlling entity acquires a listed company.
As of October 20th, there were no prediction markets covering this deal. Helbor is a property developer, while HBR Realty specializes in income-generating properties like shopping malls and office spaces. Once the swap is completed, Helbor will cease to be listed on B3's Novo Mercado, and HBR's valuation will increase due to the addition of Helbor's housing business.
Investors should monitor this development, as it signals a trend of Brazilian companies leaving the stock market, as explained in the guide to company exits from B3.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
