The Investment will be implemented through a Follow-On Public Offering conducted by Banco Inter whereby Stone will act as a cornerstone investor
Stone Enters Into Investment Agreement With Banco Inter. (Credit: Adam Radosavljevic from Pixabay.)
StoneCo Ltd. (Nasdaq: STNE) (“Stone” or the “Company”), a leading provider of financial technology solutions that empower merchants to conduct commerce seamlessly across multiple channels, today announces that it has signed a definitive investment agreement with Banco Inter (B3: BIDI3, BIDI4, BIDI11) (“Banco Inter”), a leading and fast-growing digital bank in Brazil.
Banco Inter is a leading digital bank in Brazil, acting as a service platform aiming to simplify people’s lives. Banco Inter has large user base (10.2 mm users as per March 31, 2021) and proven track record in product and services deployment, offering a complete suite of products and services to individuals (banking, marketplace, credit, insurance, investments).
On May 24, 2021, Banco Inter’s controlling shareholders and Stone, entered into binding agreements outlining the transaction, whereby Stone will invest up to R$2.5 billion (approximately US$471 million) in newly issued shares issued by Banco Inter, becoming a minority investor (limited to a 4.99% stake) of Banco Inter after the transaction (the “Investment”).
The Investment will be implemented through a Follow-On Public Offering conducted by Banco Inter (“Follow-On”) whereby Stone will act as a cornerstone investor at a fixed price per Share (B3: BIDI11) of R$57.84, already taking into consideration the split of Banco Inter’s shares as approved on May 20, 2021.
As part of the Investment, Stone and the controlling shareholders of Banco Inter will enter into a Shareholders’ Agreement whereby Stone will have the right of first refusal in the case of change of control of Banco Inter, for a period of 6 (six) years and according to certain price thresholds.
In addition to that, Stone will have the right to join the Board of Directors of Banco Inter with one seat out of 9 (nine).
StoneCo will fully fund the Investment with cash on hand and committed debt specific for this transaction, not raising additional equity related to this purpose.
Inter and Stone teams are working together to explore and engage in partnership opportunities aimed at bringing Inter consumers to Stone merchants, as well as maximize the value proposition for both Inter’s consumer and Stone’s seller ecosystems. Examples of value creation avenues being explored are:
Connect Stone merchants to InterShop, driving the digitization of Stone merchant base and providing an omnichannel journey for Intershop consumers.
Enable a seamless mobile payment experience between Inter consumers and Stone merchants, online and offline.
Enhance value proposition to Stone and Inter client base, by leveraging product and payment technology capabilities from both companies.
Leverage Inter’s funding capabilities to drive further efficiency in Stone’s working capital offerings as well as giving Inter clients access to new investment opportunities in fixed income, through the offering of FIDCs.
Source: Company Press Release