March 9, 2018 / 5:46 PM / in 7 months

EIG Global Partners rules out increase in offer to delist Brazil's Prumo

SAO PAULO, March 9 (Reuters) - EIG Global Energy Partners LLC ruled out on Friday raising the price in a buyout offer to delist Brazilian logistics company Prumo Logistica SA , after 18 months of negotiations with its minority shareholders.

In a securities filing, Prumo said the EIG subsidiary that is extending the offering said it “has no intention on raising the bid to 15 reais,” denying a report by newspaper O Estado de S. Paulo on Friday.

If all shareholders accept EIG’s proposal, the transaction may reach 541 million reais ($167 million). The deadline for shareholders to accept the current 11.50 reais offer per share is 4 p.m. local time (1900 GMT) on Friday.

EIG has already raised its price once, from 9.94 reais per share, after shareholders complained about the price.

To delist Prumo, controlling shareholder EIG needs acceptance of two-thirds of the minority shareholders. It is unclear whether EIG will get the necessary 66 percent of the company’s free float.

If EIG does not reach the threshold, Prumo will continue as a listed company at B3 SA Brasil Bolsa Balcao.

Shares of Prumo were down 0.63 percent in early afternoon trading at 11.13 reais. ($1 = 3.2404 reais) (Reporting by Carolina Mandl Editing by Frances Kerry and Phil Berlowitz)

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