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Brazil: Kroton close to clinching $1.7 bln deal for Estácio

 |  July 3, 2016

Brazil’s No. 2 for-profit college operator Estácio Participações SA said on Friday its board accepted financial terms of an improved takeover bid from larger rival Kroton Educacional SA worth $1.7 billion, nearly ending a month-long battle.

Kroton, the world’s largest education company by market value, said in a filing it had offered a swap ratio of 1.281-to-1 for Estácio’s shares as well as a one-off cash payment of $52.84 million, equivalent to roughly 0.55 reais per Estacio share.

Estácio said its board had agreed at a meeting on Thursday to the financial conditions of Kroton’s new offer, pending the negotiation of operational terms of the agreement between the two companies and the regulatory authorities’ approval.

The board will meet again on July 8 to review the terms of the merger and, if all the conditions are agreed on, call for a shareholders’ assembly to approve the proposal.

Full Content: Reuters

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