June 15, 2018 / 10:55 PM / 5 months ago

UPDATE 1-Banco do Brasil to spend $202 mln to raise stake in Argentina's Patagonia

(Adds background and capital impact)

SAO PAULO, June 15 (Reuters) - State-controlled Banco do Brasil SA said on Friday it will pay $202.4 million to increase its stake in Argentina’s Banco Patagonia SA after some shareholders exercised their right to sell the shares.

Banco do Brasil’s stake in Patagonia will rise to 80.38 percent from 58.97 percent currently, according to a securities filing.

Brazil’s largest bank said this transaction will reduce its capital ratio by 0.12 percentage points.

Banco Patagonia minority shareholders Jorge Guillermo Stuart Milne, Ricardo Alberto Stuart Milne and Emilio Carlos González Moreno sold their shares for 48 argentine pesos ($1.314) each, below today’s price of $1.71 on the Argentine stock exchange.

After considering a potential sale of Banco Patagonia and a share offering last year, Banco do Brasil changed its mind. Chief Executive Paulo Caffarelli said in February that Patagonia was not up for sale. ($1 = 28.0500 Argentine pesos) (Reporting by Carolina Mandl; editing by Sandra Maler and Cynthia Osterman)

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