BTG Pactual spins off fast-growing commodities arm to free up capital
SAO PAULO, April 8 (Reuters) - Grupo BTG Pactual SA has spun off a fast-growing commodities sales and trading unit, allowing the Brazilian investment bank to free up capital in the wake of a recent balance sheet downsizing.
In a securities filing, BTG Pactual said the spin-off will allow shareholders of the São Paulo-based firm to own 65 percent of the unit, which will be renamed Engelhart Commodities Trading Partners. The transaction is expected to be finalized by the third quarter, the filing said.
Bloomberg News reported earlier Friday that the unit would be separated in a deal valuing the business at about $1.6 billion. A source had told Reuters that the decision would be announced Friday. (Reporting by Guillermo Parra-Bernal; Editing by Bernard Orr)
© Thomson Reuters 2016 All rights reserved.