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Reuters – GP Investments Approves Buy Back Plan

Brazilian private equity firm GP Investments Ltd has approved a plan to buy back about 10% of its outstanding Class A stock, the company’s board said in a securities filing on Monday. The company’s board said the firm may buy 12.5 million shares from investors for one year starting Aug. 16, Reuters reported. The shares will be held in the company treasury and the voting rights will not be used.

(Reuters) – Brazilian private equity firm GP Investments Ltd has approved a plan to buy back about 10 percent of its outstanding Class A stock, the company’s board said in a securities filing on Monday.

 

The company’s board said the firm may buy 12.5 million shares from investors for one year starting Aug. 16. The shares will be held in the company treasury and the voting rights will not be used.

 

The price paid for the shares will be the market price on the day of purchase for GP Investimentos Class A shares in Luxembourg and for Brazilian depositary receipts, or BDRs, which allow investors to trade Class A shares in Sao Paulo. The BDRs are also included in the buyback.

 

GP Investments Brazilian-traded shares fell 1.67 percent to 4.13 reais in Sao Paulo trading on Monday before the buyback was announced. At current market prices, the deal would be worth about 52 million reais ($25.2 million).

 

Goldman Sachs Group analyst Carlos Macedo on June 13 trimmed his price target for GP’s Brazilian traded shares to 6.10 reais from 6.80 reais. The market value of the company’s Brazilian investments has fallen in recent months, he said, adding the company has faced increased difficulty selling stock.

 

GP Investments owns shares in companies such as Magnesita Refratorios SA, a Brazilian refractory tile company that supplies the steel industry; real estate group BR Properties SA and hotel operator BHG-Brazil Hospitality Group SA.

 

($1 = 2.03 Brazilian reais)

 

(Reporting by Jeb Blount; Editing by Matt Driskill)