SAO PAULO, June 2 (Reuters) - Brazilian real estate company BR Properties SA is planning to raise about 1 billion reais ($309 million) by selling new shares, newspaper O Estado de S. Paulo reported on Friday.
Buyout firm GP Investments Ltd and sovereign wealth fund Abu Dhabi Investment Authority will subscribe to about 70 percent of the so-called follow-on offering, Estado said, without disclosing how it obtained the information.
Last year, GP acquired a controlling stake in BR Properties, backed by the sovereign wealth fund.
Media representatives for BR Properties declined to comment on the report. Representatives for the Abu Dhabi Investment Authority and GP were unable to comment immediately.
BR will use proceeds from the transaction, which could be announced in coming days, to cut debt, potentially paving the way for acquisitions, according to the report.
The company is focusing on expanding as Latin America’s largest economy exits from its deepest recession on record, which drove property prices down.
The company has hired the investment banking units of Banco Bradesco SA, Itaú Unibanco Holding SA, Santander Brasil SA and Bank of America Merrill Lynch as underwriters, Estado reported.
BR Properties Chief Executive Officer Martin Jaco had said in September the company was looking at whether to raise new capital through a share offering. Management had identified 4 billion reais worth of acquisition targets among office and industrial properties, he added.
$1 = 3.2395 reais Writing by Ana Mano; Editing by Lisa Von Ahn