CORRECTED-UPDATE 1-BTG Pactual-backed BR Pharma to move ahead with capital plan
(In 5th paragraph, corrects to remove attribution to BR Pharma)
By Tatiana Bautzer and Paula Arend Laier
SAO PAULO Dec 7 (Reuters) - Brasil Pharma SA, the Brazilian drugstore chain backed by embattled investment bank Grupo BTG Pactual SA, is going ahead with a plan to raise as much as 600 million reais ($160 million) from investors, the company told Reuters on Monday.
In a statement, BR Pharma, as the company is commonly known, said it "is sticking to the planned offering and is currently working on it," declining to elaborate.
The capital plan, which set a floor of 400 million reais, could be launched formally as early as this week, when executives at São Paulo-based BR Pharma will meet investors in so-called road show meetings, according to a source who requested anonymity because the plan remains private.
Shares in BR Pharma plummeted almost 25 percent on Monday, the stock's largest drop ever, on speculation the offering might face headwinds. BTG Pactual, which owns 37 percent of BR Pharma, declined to comment.
BTG Pactual has had mixed results on a two-year turnaround of the drugstore chain.
On Nov. 12, the company sold money-losing unit Mais Econômica for 44 million reais, which sources close to the company said will help stem BR Pharma's net loss.
The company posted a net shortfall of 420 million reais in the first nine months of the year. Continuación...