Brazil’s Moreira Salles family, through their investment firm MS Alpa Participacoes, has announced plans to purchase up to 32 million preferred shares in Alpargatas SA, the owner of the popular Havaianas flip-flop brand. The family already holds a stake of around 28% in the company and is part of Alpargatas’ control block. The offer, at a price of 10.50 reais ($2.10) per share, represents a premium of 17.2% over the stock’s closing price on May 19.

Upon the announcement of the bid, Alpargatas’ shares experienced a significant surge of more than 17%, marking the second largest daily increase for the company in the past two years. Analysts at JPMorgan have lauded the move, considering it a positive step from one of the company’s controlling shareholders who are likely to hold a long-term interest. They also believe that the offer provides a good exit opportunity for investors, even at the premium price.

There is speculation in the market that this bid could be the first step towards a broader acquisition by the controlling shareholders. Some also suggest that Alpargatas may potentially be delisted following the recent sell-off. However, overall, market participants have reacted positively to the Moreira Salles family’s bid, considering it a transparent and well-structured move to increase their stake in Alpargatas. This development holds significant implications for the future of the company and its current shareholders.

Additional link:
Reuters: Moreira Salles family offers to buy more shares in owner of Havaianas
Bloomberg: Moreira Salleśs bid for Alpargatas essentially freeing up capital