By Matt Grossman
XP Inc. will combine with Banco Modal S.A. in an all-stock transaction, XP said Friday.
The deal will see XP pay 19.5 million newly issued shares or Brazilian depositary receipts to acquire 100% of Banco Modal, a price that XP said implies a 35% premium over Banco Modal's 30-day average price.
If minority shareholders don't give the required approvals, XP plans to acquire 56% of Banco Modal from its controlling shareholders in a deal that would give minority shareholders the right to participate.
"Given the immaterial overlap between XP and Modal's clients, we expect that interesting revenue synergies and client experience enhancements will be captured," XP Chief Financial Officer Bruno Constantino said.
Write to Matt Grossman at firstname.lastname@example.org
(END) Dow Jones Newswires