By Jeffrey T. Lewis
SÃO PAULO–Alpargatas shares jumped 17% after the Brazilian footwear maker said one of its controlling shareholders offered to buy 32 million shares in the company.
Shares reached 10.52 reais, the equivalent of $2.12, higher than the offer price of BRL10.50 a share. Brazil’s benchmark Ibovespa stocks index was down 0.1% in mid-afternoon trading.
Alpargatas said Monday it was informed that MS Alpa Participações, which is controlled by Brazil’s Moreira Salles family, would pay 10.50 reais a preferred share to shareholders that accept the offer.
A valuation report for Alpargatas put the value of the shares at BRL8.74 apiece. If MS Alpa succeeds in buying 32 million shares, it would reduce Alpargatas’s free float to 27% from 32%, while MS Alpa’s stake would rise to 34% from 29%, according to analysts at XP Investimentos.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
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