SAO PAULO, July 8 (Reuters) - Brazilian financial technology
company PagSeguro Digital Ltd and Banco Votorantim,
known as BV, on Thursday denied a deal was close for PagSeguro
to acquire BV.
Media reports and one source with knowledge of the matter
had said earlier in the day that they were in talks, sending
PagSeguro's Nasdaq-listed shares down as much as 14%.
But Pagseguro said in a statement that its banking unit
PagBank "does not intend to acquire BV bank and there are no
related signed agreements to do so," while BV and its
shareholders issued a denial too.
"Banco Votorantim SA ('BV bank'), the fifth largest private
Brazilian bank, and its shareholders, Banco do Brasil and
Votorantim Finanças, deny recent news about the sale of BV," the
"BV and its shareholders remain engaged in its strategic
agenda, seeking to diversify their business to deliver the best
products and services to their customers."
PagSeguro's Nasdaq-listed shares ended down 7.9% at $51.61.
They had fallen more than 14% earlier in the session.
Financial news website Brazil Journal reported the deal
earlier on Thursday, suggesting a price tag of 16 billion reais
($3 billion) for BV, a consumer-facing bank in Brazil that has a
significant credit portfolio.
Banco do Brasil SA has been trying to divest BV
for at least two years. BV filed earlier this year for an
initial public offering, the second time it had done so, but
canceled the request in April.
PagSeguro, which has a market cap of roughly $18.5 billion
on the Nasdaq, is principally a payments processor in Brazil.
Its yellow credit and debit card machine is ubiquitous
throughout the country.
($1 = 5.26 reais)
(Reporting by Carolina Mandl and Tatiana Bautzer in Sao Paulo;
Additional reporting by Gram Slattery in Rio de Janeiro; Writing
by Carolina Mandl and Jamie McGeever; Editing by Paul Simao and