Boa Vista (BOAS3): Equifax proposes to write off the company at a premium of 67%; The stock closed down 48%.

credit agency Boa Vista Serviços (good 3Announced Sunday (18) that Equifax do Brasil (EFX Brasil) and its parent company Equifax Inc. (Equifax) has presented the company with a proposal to combine its businesses.

Under the terms of the proposal, shareholders of the Company will be offered the option to receive: (i) R$8.00 per share of the Company in cash, (ii) a combination of cash and Brazilian Depositary Receipts (BDRs) representing Equifax’s issued common stock; or (iii) a combination of EFX Brasil’s common stock and cash or Equifax BDRs.

The offer of R$8 per share represents a 67% premium to Boa Vista’s closing share price last Friday (16) of R$4.79. As a result, shares rose in the trading session on Monday (19), with a gain of 48.23%, at R$7.10.

However, the amount offered is less than the R$12.20 that investors paid during initial public offering (IPO)🇧🇷

According to a statement, the proposal was made with the support of the São Paulo Commercial Association (ACSP), the company’s largest shareholder, with about 30% of the share capital. If the potential transaction goes through, the ACSP must commit to entering into a 15-year agreement with the Company during which it will refrain from competing with the Company’s business, provide exclusive access to its data and provide advisory services and regulatory support to the Company. .

Boa Vista’s board of directors has authorized the hiring of financial and legal advisors to assist the company in analyzing and negotiating a potential transaction.

Related