SAO PAULO: Brazilian independent asset manager Quadra Capital is nearing the acquisition of 15 billion reais (US$2.99bil) of assets from state-owned Banco de Brasília (BRB) that were previously held by liquidated lender Banco Master, say three people familiar with the talks.
The deal requires a nod, or at least no objection, from the central bank, the people added on condition of anonymity because the information is not public.
Although formal approval is not needed, according to two other sources, the monetary authority needs to understand the transaction’s framework, one of them said.
Quadra and BRB declined to comment. The central bank did not immediately reply to a request for comment.
The financial regulator has been engaged with BRB over the lender’s need to bolster its capital following a balance sheet issue tied to the acquisition of assets from Master, which included fraudulent credit portfolios.
Last November, Brazil’s central bank liquidated Master, a mid-sized lender that had grown aggressively through a strategy based on high-yield debt sold via investment platforms.
The bank’s former controller, Daniel Vorcaro, is currently in prison amid a police investigation into fraud.
Upon his arrest last month, Vorcaro’s defense team released a statement saying he denied the allegations levelled against him.
The assets under negotiation between Quadra and BRB consist essentially of equity stakes in companies or credit claims against businesses and individuals that once belonged to Master, but had no connection to the bank or its controllers, according to one of the sources.
Quadra specialises in managing low-liquidity assets.
The firm and BRB have been in talks for about 60 to 90 days and are poised to conclude within weeks, pending a non-objection from the central bank,l.
Last week, the governor of the Federal District, Celina Leão, said in Brasilia that BRB was in talks with an unspecified investment firm to sell up to 15 billion reais in assets acquired from Master. — Reuters
