June 14, 2019 / 4:02 PM / 10 days ago

Exclusive: Brazil government and BB Seguros to sell up to $2 billion of IRB Brasil shares - sources

SAO PAULO (Reuters) - Brazil’s government and BB Seguros Participações SA plan to sell their stakes in reinsurer IRB Brasil Resseguros SA by July in a share offering worth up to 8 billion reais (£1.63 billion), three sources with knowledge of the matter said.

The Brazilian Treasury and BB Seguros, a company controlled by insurance holding company BB Seguridade SA, own an 11.7% and 15.2% stake in IRB, respectively.

Their decision to sell follows state lender Caixa Econômica Federal’s move to sell an 8.9% IRB stake owned by one of its funds in February, as the government has pushed state banks to divest equity stakes in order to supplement tax revenue.

A Caixa fund sold its IRB shares at 91 reais in an offering that attracted interest from foreign investors.

Shares in IRB are up 19.27% this year, trading at 97 reais.

Investment banking units of Caixa, Banco Bradesco SA, Itau Unibanco Holding SA, UBS Group AG, Citigroup Inc, Bank of America Corp and Banco do Brasil SA, which controls BB Seguridade, will manage the deal.

Itau and Bradesco, Brazil’s two biggest private-sector banks, are also major IRB shareholders.

The Brazilian Treasury and IRB declined to comment on the matter. Banco do Brasil did not immediately comment.

Reporting by Carolina Mandl and Tatiana Bautzer; Editing by Brad Haynes and Chris Reese

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