WorldVest, a global merchant bank, has signed a binding Letter of Agreement (LOA) to acquire 100% equity ownership of Banco Porto Seguro, a Brazilian multiple license bank that allows for both commercial banking and investment ‘merchant’ banking.
Reportedly, the terms of the LOA call for a multi-stage closing allowing WorldVest to immediately begin operating the bank through a joint operating & profit sharing agreement while waiting for final acquisition approval by the Central Bank of Brazil. WorldVest expects to complete the first closing within 30 days and will begin operations under the name of Banco WorldVest International.
The company has added that at first closing, through the joint operating & profit sharing agreement, it will immediately begin receiving 100% of all profits from banking activities while waiting for final closing, which is likely to get in approximately eight months.
The bank has stated that through Banco, it will offer a variety of commercial, retail and investment banking services to Brazilian companies and consumers, while using Banco to facilitate its global merchant banking transactions.
Garrett Krause, CEO of WorldVest, said: With the acquisition of Banco, WorldVest will have a strong competitive advantage in its ability to source and deploy capital internationally during this very challenging global economic environment. We regard Brazil as an extremely attractive and potentially lucrative international banking market. Additionally, WorldVest will look to take advantage of global arbitrage by investing in opportunities in the US, Brazil, China and Korea while pursing public listings for its investments in the US capital markets.”
