SAO PAULO (Reuters) – Brazilian shoemaker Alpargatas SA announced a follow-on offering of 37.5 million new common shares and 57.5 million new preferred shares as it looks to raise money to pay for the acquisition of a stake in Rothy’s Inc.
At Thursday’s closing price of 26.60 reais per preferred share in Alpargatas, the offering could raise about 2.53 billion reais ($481.94 million), the shoemaker said in a securities filing.
The offering is expected to be priced on Feb. 22.
Alpargatas said controlling shareholders Itausa SA and Grupo MS have committed to take part.
Investment banks Itau BBA, Bank of America, J.P. Morgan, Bradesco BBI and Citigroup Brasil will manage the offering.
In December, Alpargatas acquired a stake of 49.99% in California-based Rothy’s, which makes clothes and shoes from recycled products, for up to $475 million, in a plan for global expansion.
The plan to announce a new share offering was first reported by financial blog Brazil Journal, citing sources familiar with the matter.
($1=5.2496 reais)
(Reporting by Gabriel Araujo; Editing by Clarence Fernandez)
