IRB sets price per share at R$1 on offer and raises R$1.2 billion
IRB Brasil Resseguros informed that it fixed the price per share at R$ 1.00 in the scope of its subsequent restricted public offering of shares (‘follow-on’), and approved the capital increase of R$ 1.2 billion, with the issuance of 1.2 billion new common shares. The price was below the closing price of the IRB share in the trading session of this Thursday (1) on B3, of R$ 1.40. The offer already provided that the capital increase would be limited to R$ 1.2 billion.
With the ‘follow-on’, the company’s new capital stock is now BRL 5,453,080,000.00, divided into 2,467,890,331 common shares and a special class preferred share held by the Federal Government (‘golden share’). , according to the material fact sent to the Securities and Exchange Commission (CVM). The shares of the restricted offer will be traded on B3 as of September 5th, with physical and financial settlement on September 6th.
The subsequent offer is part of a plan that IRB Brasil delivered to the Superintendence of Private Insurance (Susep) to address the regulatory non-compliance that came into being at the end of the second quarter, said the CEO of the reinsurer, Raphael de Carvalho, during a conference call results.
The plan also provides for structured retrocession operations, a type of transfer of risk to other organizations, which helps to reduce the regulatory capital requirement.
Also part of the strategy is the sale of real estate assets and equity interests. This week, the IRB announced the sale of the building where the company’s headquarters is currently located, in downtown Rio de Janeiro, to the Support Service for Micro and Small Enterprises in the State of Rio de Janeiro (Sebrae-RJ).
The total value of the transaction is R$85.3 million. Also this week, IRB-Brasil Resseguros reported that it had entered into an out-of-court settlement with the companies that own and control the Casashopping venture, in Rio de Janeiro, resolving a pending issue of almost 20 years.
Under the agreement, these companies agreed to pay BRL 100 million to the company, with the aim of ending the lawsuits between the parties, as well as selling IRB’s real estate interest in the project.