Carlyle Group LP offered to buy Brazilian specialized assistance provider Tempo Participações SA for up to 718 million reais ($204 million) in what may be the private equity firm’s second deal in the country this year.
Under terms of the plan, which was unveiled in a securities filing late on Thursday, Carlyle offered to acquire 82.1 million shares from Tempo’s main shareholders and extend the proposal to minority investors. On a per-share basis, stockholders can receive a net 3.95 reais in a lump sum or 4.39 reais in installments.
The proposal also gives Tempo shareholders the option to get a subscription bonus in the form of shares of insurer Qualicorp SA under certain conditions, the filing added. Carlyle controlled Qualicorp, Brazil’s only listed collective health services provider for years, between early 2010 and the company’s initial public offering in June 2011.
Including the subscription bonus, the deal could cost Carlyle between 647 million reais and 718 million reais, implying a premium of 23.6 percent to 35.9 percent over Tempo’s 90-day average price.
Shares of Tempo, which is controlled by buyout firms GP Investments Ltd and Tarpon Investimentos SA , shed 4.5 percent to 4 reais on Thursday.
The stock is up 29 percent over the past 12 months.
Initially created as a dental and healthcare insurance provider, Tempo has recently specialized in support services, such as roadside and travel assistance as well as providing domestic emergency staff, such as plumbers, electricians and locksmiths.
Carlyle paid 1.75 billion in April for a 8 percent stake in Rede D’Or São Luiz SA, Brazil’s largest hospital chain, and is negotiating to increase that with majority shareholders the Moll family and Grupo BTG Pactual SA.
Washington-based Carlyle oversees more than $193 billion in assets.