Itaú Scoops Up Pactual Stakes

SÃ O PAULO—Brazil´ s giant bank Itaú Unibanco Holding SA agreed to buy a controlling stake of debt collector Recovery do Brasil Consultoria SA from troubled investment bank BTG Pactual SA, for 640 million reais ($162 million).

Itaú on Thursday said it would buy a stake of around 82% of Recovery do Brasil, representing BTG's entire stake in the company.

"Simultaneously with the acquisition of the share in Recovery's equity stock, Itaú Unibanco shall, under the same operation, acquire approximately 70% of a portfolio of BRL38 billion in credit rights associated with recovery activities concerned with portfolios over which BTG has title," said Itaú , which will pay an additional amount of BRL570 million for this.

Recovery was founded in 2000 in Argentina and has been in Brazil since 2006. Recovery's activities consist of prospecting and evaluating portfolios, structuring operations, and conducting operational management, with a presence in every segment from individuals to corporate credit, with financial and nonfinancial institutions.

Both operations still must receive regulatory approval. "The operation is not estimated to have material accounting effects for Itaú Unibanco's 2016 bottom line," it said.

BTG Pactual, once a growing investment bank with global ambitions, has been selling assets to raise cash after the arrest of its founder and former CEO André Esteves, on Nov. 25.

Earlier this month, Brazil's Supreme court released Mr. Esteves to house arrest but banned the banker from running companies involved in a corruption probe centered on state-run oil firm Petró leo Brasileiro SA, or Petrobras. Mr. Esteves was arrested on suspicion of obstructing the investigation.

Through his lawyers, who said there wasn't sufficient evidence to hold him in prison, Mr. Esteves has denied wrongdoing. But he still faces charges and a pending trial for allegedly trying to obstruct the investigation.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

December 31, 2015 10:25 ET (15:25 GMT)

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