Getnet (GETT11) stake closed in increments of 22.5% after announcing its intention to go private: Why would the company be de-listed?

Getnet Posts (Jet 11) rose on Friday (20) with the news that the company’s shares must be withdrawn from the Brazilian Stock Exchange. GETT11 units jumped 22.47% to R$4.47. The intent to go private is announced just seven months after the shares are listed in B3. In the notice to the market, the company did not explain why the controlling shareholder, PagoNxt, decided to acquire all of the company’s shares and deregister as a public company. But analysts expect the reasons.

The third largest network of machines in Latin America, behind Cielo (CIEL3) and Rede, Getnet shares were listed on the Brazilian Stock Exchange on February 18, 2021. As a result of the separation of Santander Brasil (San B 11), the papers appeared directly on Ibovespa. However, analysts note that the company has always had a liquidity problem. Since their debut, units The GETT11 loss has accumulated by 22% until then.

Since I started covering the company, Citi mentioned the liquidity issue that left the papers evaluation depression and free float (Percentage of shares in free circulation in the market) reduced. “And although it traded, for a while, at similar multiples to Santander Brasil, it failed to aim for crossovers, unlocking value for the group,” says the house analysis.

In Citi’s view, the relationship with the controlling shareholder created corporate governance issues, posing a risk to the newspaper. The house, for now, maintains a neutral Getnet recommendation and a target price of R$3.70.

Santander Spain controls 90% of PagoNxt, Getnet’s largest shareholder. Newspaper Economic value I found that the decision to close the capital of the company would have come from the Spanish bank. As a private company, Getnet will have more management flexibility, more freedom to embrace commercial strategies, grow through mergers and acquisitions and expand abroad.

“We see this move as highly unexpected on the part of the controlling shareholder, Santander Spain, especially given the short time period since Role (Separately), at the end of 2021, Bradesco BBI analysts said. The announcement means a 29.3% increase from Thursday’s close. The price that PagoNxt will offer for each common or preferred stock will be R$2.36 and R$4.72 per unit.

In the coming days, the company will hold a meeting of the board of directors to decide on the selection of the institution or specialized company responsible for preparing the evaluation report. An extraordinary meeting of the General Assembly will also be held to decide on deregistration as a public company.

The company also intends to offer a public write-off in the United States, where GetNet owns ADS ads.

Getnet generated a profit of R$98.9 million in the first quarter of 2022 (Q1 22), an increase of 76.1% year-over-year.

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