Brazil's Gafisa inclined toward Tenda IPO, sources say

martes 23 de agosto de 2016 11:27 GYT
 

By Tatiana Bautzer and Guillermo Parra-Bernal

SAO PAULO Aug 23 (Reuters) - Brazilian homebuilder Gafisa SA is inclined toward listing subsidiary Construtora Tenda SA rather than finding a strategic partner, on the notion that an initial public offering could fetch more for the unit and accelerate efforts to cut debt, three people familiar with the plans said.

Listing Tenda on the São Paulo Stock Exchange would allow investors to take advantage of a three-year turnaround that has seen the low-income homebuilder return to a profit and deliver return on equity closely trailing that of larger segment rival MRV Engenharia SA, two sources said.

The sources said a Tenda IPO would also be more effective than a spinoff in helping to reduce Gafisa's debt-to-equity ratio, which nears 80 percent, according to Thomson Reuters data. Gafisa, which had consolidated net debt of 1.45 billion reais ($453 million) at the end of June, has hired Rothschild & Co to advise on potential options for Tenda. (Editing by Jeffrey Benkoe)