SAO PAULO (Reuters) – Brazilian financial technology company PagSeguro Digital Ltd is in talks to acquire Banco Votorantim, known as BV, one source with knowledge of the matter said on Thursday.<\/p>\n
The source, who asked not to be named, said talks are ongoing and there is no certainty that a deal will be signed.<\/p>\n
In a news release, PagSeguro said its banking unit PagBank is always looking for investment opportunities, but \u201cdoes not intend to acquire BV bank and there are no related signed agreements to do so.\u201d<\/p>\n
After the news release, PagSeguro\u2019s Nasdaq-listed shares pared earlier losses to trade down about 7.3% at $51.99. They had fallen more than 14% earlier in the session.<\/p>\n
Financial news website Brazil Journal reported the deal earlier on Thursday, suggesting a price tag of 16 billion reais ($3 billion) for BV, a consumer-facing bank in Brazil that has a significant credit portfolio.<\/p>\n
Banco do Brasil has been trying to divest BV for at least two years. BV filed earlier this year for an initial public offering, the second time it had done so, but canceled the request in April.<\/p>\n
BV and Banco do Brasil declined to comment. Votorantim Participacoes, also a shareholder in BV, did not immediately respond to a request for comment.<\/p>\n
PagSeguro, which has a market cap of roughly $18.5 billion on the Nasdaq, is principally a payments processor in Brazil. Its yellow credit and debit card machine is ubiquitous throughout the country.<\/p>\n
($1 = 5.26 reais)<\/p>\n