Brazil's BTG Pactual proceeds with spinoff of commodities arm
BRASILIA, June 29 (Reuters) - Grupo BTG Pactual SA , which is recovering from a corruption scandal, is moving ahead with plans to spin off Engelhart CTP, its fast-growing commodities sales and trading unit, the Brazilian investment bank said on Wednesday.
BTG Pactual will transfer up to $1 billion in Engelhart stock to its shareholders, reducing its stake in the unit to around 35 percent from 92 percent, the company said in a statement. It expects to complete the transaction, first announced in April, in the third quarter.
The spinoff would help insulate the commodities unit from the scandal, which hurt BTG Pactual last year. Founder André Esteves was arrested in November in connection with a corruption probe in Brazil, sparking massive client fund withdrawals and asset sales. (Reporting by Silvio Cascione; Editing by Lisa Von Ahn)
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