Economy & Business

UPDATE 2-Brazil’s Grupo Dimed hires banks for potential share offering

(Recasts with company confirmation it considering share offering)

SAO PAULO, June 29 (Reuters) – Brazil’s Grupo Dimed , owner of drugstore chain Panvel and drug distribution company Dimed, said on Monday it had hired banks for a potential share offering, although it added it had made no decisions yet.

Two sources with knowledge of the matter said Dimed was preparing a share offering that could reach 800 million reais ($146 million). Financial blog Brazil Journal first reported the news earlier on Monday.

The offering would be managed by the investment banking units of Banco Bradesco SA, Itau Unibanco Holding SA and Banco BTG Pactual SA, Dimed said.

The company, which has low liquidity in Brazil’s stock exchange, plans to convert all its shares into common stock and join Novo Mercado, a market segment with higher governance rules, the sources said.

$1 = 5.4840 reais
Reporting by Tatiana Bautzer; Editing by Steve Orlofsky and
Tom Brown

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