UPDATE 1-Brazil homebuilder Gafisa plans spinoff; shares jump
By Marcela Ayres
SAO PAULO Feb 7 (Reuters) - Brazilian homebuilder Gafisa SA is looking to spin off its Tenda division, extending the group's divestitures after losing money for three years.
Chief Executive Duilio Calciolari plans to leave the company after the 90-day process of establishing two separate corporate structures, he said in a Friday securities filing.
Gafisa shares jumped as much as 7 percent in early trading after Calciolari told Reuters in a telephone interview that the idea behind the plan is to give investors a share in the separately listed Tenda for each share they hold in Gafisa.
"The synergies between Tenda and Gafisa are almost nothing, very little, with different supplier networks," he added.
The group acquired Tenda in 2008 after a drop in the homebuilders' shares, but the unit has led to one headache after another. After a series of costly budget overruns and canceled contracts, Gafisa cut Tenda's new construction to zero in 2012, from 1.6 billion reais ($670 million) in 2010.
Tenda started a modest number of new low-income projects last year, equal to a third of new construction in Gafisa's middle-income segment.
Gafisa has posted losses in net income for 2011, 2012 and in the first nine months of 2013. Continuación...