Investment in Brazilian property giant grows after merger
Date added: 5th May, 2010 at 10:16
(view all articles from May, 2010)
Categories: Property News
Stocks and shares in Brazilian real estate developer PDG Reality have risen since the company merged with its rival Agre at the beginning of the week.
Property in Brazil has proven to be a prosperous market for PDG after it focused on low-income housing as part of the government's $41 billion (£27 billion) scheme to provide affordable real estate, Reuters reports.
The $1.4 billion deal will see PDG become Brazil's largest homebuilder, the news provider said, in a year when merger activity in the country has been strong on the back of the fastest economic growth in 25 years.
PDG Reality and Agres said to Reuters: "The association will result in a more efficient corporate structure, with a combined land bank that is complementary on a geographical basis and a range of products that reaches out to all social segments."
Shares in both companies rose after the deal was signed with Agre rising 3.1 per cent on the day. PDG closed at 16.54 reais (£6.19) per share last night (May 4th) after closing at 16.45 reais before the deal, according to Reuters.
The companies have agreed an exchange ratio of 0.495 PDG share to each Agre share.
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