Excel Funds Management Inc.

Emerging Markets

Itau Buys $5.17 Billion Redecard Shares in Tender Offer

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Itau Unibanco Holding SA (ITUB4), Latin America’s biggest bank by market value, purchased 299 million shares of Redecard SA for 10.5 billion reais ($5.17 billion) as it completed its plan to take the credit-card processor private.

Redecard will be de-listed from the Bovespa and Itau “will absorb Redecard, and that will create synergies and they will be able to cut costs,” said Pedro Galdi, chief strategist at brokerage SLW Corretora in Sao Paulo. “It was a long process, like a soap opera, but now Itau has reached its goal.”

With a pre-existing 50% stake in Redecard , Itau Unibanco decide to consolidate their payment processing systems in the face of stronger central bank deregulation of the space in Brazil.

Redecard was created as a spinoff of Credicard in 1996 by Citigroup Inc., Banco Itau Holding Financeira SA and Uniao de Bancos Brasileiros SA, known as Unibanco, to process credit-card payments and merchant-acquiring businesses, according to its website. Barueri, Brazil-based Redecard raised 4.07 billion reais in an initial public offering in July 2007.

Itau Unibanco, is the sub-advisor on the Excel Latin America Fund. The fund’s mandate is to seek long-term growth by investing in equity securities of publicly traded Latin American companies. As of Sept 1, 2012 the fund has retunred 1.8% and 8.8% since inception.

Written by Jack S.

 

Source: Itau Buys $5.17
Billion Redecard Shares in Tender Offer

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Author: Excel Funds Management

We Are Leaders. Our Focus is Undivided. Excel Funds is Canada’s specialist in Emerging Market investment opportunities. We pioneered Emerging Market mutual fund design and distribution in Canada. Our focus is undivided – Emerging Markets is all we do. Our Mission Is To Offer Canadians True Global Access By offering Canadians access to rapid growth markets, Excel Funds provides truly global and diverse investment value. Our clients want consistent, responsible and intelligent solutions – we will never stop being challenged and deliver on client expectations. We Listen. We Are Determined To Deliver. Our clients want to understand better. Excel Funds is the only company dedicated to providing investors with actively managed, best-in-class Portfolio Managers based in regional markets. In order to deliver deeper understanding, we are not removed from unique cultural, political and economic experiences. We Initiate. We Create. Investors benefit from strong, sustainable growth. To create wealth for our clients we will: • Offer globally diverse opportunities to capture shifts in world economies • Not resist change and continually lead in Emerging Markets global growth • Engage world class institutional managers for retail investors We Are Passionate. We Will Never Stop Innovating. True leadership is enabling and seeks a positive outcome for all invested. We will not rest on past success, and continue to provide clients with: • Innovative fund structures • Canada’s largest & most comprehensive Emerging Markets products • The best institutional level Portfolio Managers • World class on-the-ground active managers • A singular focus on Emerging Markets, the driver of global growth

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