The R$2.5 billion follow-on transaction that BTG Pactual completed Tuesday 11 June was the most visible milestone in an extraordinary year for the bank.
The bank’s share price has risen from R$18 one year ago to close at R$47 at the end of the trading session in which the deal was executed. Unusually, the bank’s share price rose by 15% on the news of the secondary share offering.
Speaking to Euromoney from New York, where he had led one of the four teams that comprised the deal’s roadshow, Roberto Sallouti, CEO of BTG Pactual, said the deal (led by the investment banking unit of BTG Pactual, Morgan Stanley, Banco Bradesco, UBS and Banco do Brasil) had fulfilled a number of his strategic objectives.
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| Roberto Sallouti, BTG Pactual |
“We were explaining that we were going to use the resources to transfer the bank’s partial ownership of [Swiss private bank] EFG [International] to the holding company,” he says. It was also an opportunity to “update investors on our traditional franchise and present our plans for our new digital retail unit”.
The primary objective – the acquisition of the bank’s share of EFG – was a response to investors’ desire to improve the profitability of the bank’s business, he adds.
