* Deal raises 232.7 million reais, 21 percent more than
* Bradesco BBI analysts say likely seller was JC Flowers
* Shares rally 3.3 percent, erasing some of Thursday losses
By Guillermo Parra-Bernal
SAO PAULO, Jan 11 An unnamed BTG Pactual Group
shareholder sold a stake in Brazil's largest independent
investment bank above the minimum asked price at an auction on
Friday, signaling that buyers are confident of the company's
The seller raised 232.7 million reais ($114 million) in the
auction, 21 percent more than initially planned.
The seller, who was neither a member of BTG Pactual's
controlling bloc nor part of the bank's management,
sold 7.19 million units for 32.36 reais each, the São Paulo
Stock Exchange said in a statement. The offering was for at
least 6.53 million shares at a minimum ask price of 29.50 reais.
Bradesco BBI analysts led by Carlos Firetti said the seller
was JC Flowers & Co. The U.S. buyout firm sold 40 percent of its
stake in BTG Pactual, partially cashing out of a two-year
investment that yielded an estimated 60 percent return, the
New York-based JC Flowers is a private equity firm led by
former Goldman Sachs Group Inc star dealmaker Christopher
Units, a blend of common and preferred stock of BTG
Pactual's investment banking and private equity divisions,
rallied 3.3 percent to 32.54 reais on Friday, the day after news
of the block sale triggered a 4.3 percent drop, their steepest
decline in almost eight months.
Since founding the firm in 2001, Flowers and his partners
have made money by partially or fully exiting some of their
investments through initial public offerings or strategic stake
sales, like they did with Japan's Shinsei Bank Ltd in
2004. The Japanese bank's IPO, which rival tycoon David
Rubenstein dubbed the most successful private equity deal in
history, reportedly netted JC Flowers more than $1 billion in
JC Flowers had made public its intention to exit its stake,
which comprises about 1.8 percent of the Brazilian bank's
capital. The stake, which the buyout firm acquired for $180
million in December 2010, is valued at about $270 million.
Before BTG Pactual's $2 billion IPO in April 2011, Chief
Executive André Esteves sold a 10 percent stake in BTG in
December 2010 to sovereign wealth funds and a pool of investors,
including JC Flowers and Italy's Agnelli, Colombia's Santo
Domingo and Panama's Mota families.
A London-based public relations executive representing JC
Flowers would not confirm that the buyout firm had sold part of
its stake in BTG Pactual on Friday.