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SAO PAULO, Nov 11 (Reuters) - Estácio Participações SA , Brazil’s second-largest for-profit education firm, will pay an extraordinary dividend totaling up to 420 million reais ($121 million), Chief Executive Officer Pedro Thompson said on Friday.
In a conference with investors to discuss third-quarter results, Thompson said two-thirds of the dividend would be paid in separate tranches on Nov. 22 and Dec. 15.
The remaining 140 million reais is conditional upon Estácio receiving payments related to the government’s Fies student loan program, according to Thompson.
He said the Rio de Janeiro-based company could also put plans to pay the third dividend tranche under review, should Estácio’s acquisition by larger rival Kroton Educacional SA be blocked by Brazil’s antitrust agency Cade, which is analyzing the deal.
Estácio shares rose as much as 6.75 percent to 16.43 reais in São Paulo trading after the firm reported strong third-quarter results, boosted by a rise in the average value of tuitions and measures to reduce payroll expenses.
Kroton and Estácio filed documentation on Aug. 31 seeking approval of the 5.5 billion-real takeover deal. It was unveiled in July and, if approved, could create the world’s largest for-profit education firm with 1.5 million students.
$1 = 3.4833 reais Reporting by Ana Mano; Editing by Bernadette Baum and Tom Brown