August 30, 2016 / 3:32 PM / 2 years ago

Brazil's Estácio CEO out after less than two months in role

SAO PAULO, Aug 30 (Reuters) - Estácio Participações SA , Brazil’s second-largest for-profit education company, said on Tuesday that Chief Executive Officer Gilberto Teixeira de Castro stepped down after less than two months in the post, citing personal reasons.

It was the second time in as many months that Estácio changed a CEO. Castro, who will be replaced on an acting basis by Chief Financial Officer Pedro Thompson, will lead a transition through the end of September, according to a securities filing.

Thompson will remain as Estácio’s CFO, the filing added.

Castro had assumed the CEO role after the resignation of Chahim Zaher, also a major shareholder of Estácio, as the company’s top executive early in July.

Shares of Estácio shed 2.2 percent to 17.05 reais at noon in São Paulo. The stock is up 39 percent this year.

Rio de Janeiro-based Estácio, which agreed to a takeover by larger rival Kroton Educacional SA last month, recently found accounting irregularities and has been struggling with mounting competition in Brazil’s education sector.

The combination of Kroton and Estácio could create the world’s No. 1 for-profit education company, with about 1.5 million students. The deal faces stringent regulatory and congressional scrutiny, analysts said.

$1 = 3.2582 Brazilian reais Reporting by Ana Mano; Editing by Guillermo Parra-Bernal and Dan Grebler

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