Kroton wants to buy stock only in operation involving Estacio

São Paulo-Kroton, largest private higher education in the country, announced on Thursday it is evaluating the purchase of rival Estácio Participações in an operation involving only actions.
Kroton''s plans occur amid the reduction of federal funding for private higher education financing through the Trust and the recession in the country, which have brought difficulties to the private higher education sector on the uptake and retention of students.
Kroton reported that hired ITA BBA and law firm Barbosa Müssnich Aragon to advise the company on a possible transaction with the Estacio.
Second Kroton, the exchange ratio evaluated internally by the company for the venture would be of 0.977 Kroton action for every 1 share of Statius, based on the average price of the last 30 trading sessions on the BM & FBovespa prior to Thursday''s announcement.
"It is important to note, however, that there are no ongoing negotiations with any Board member of Statius, and either, any agreement or proposal formulated among such companies," said Kroton in fact relevant to the Brazilian Securities Commission (CVM).
Based on the exchange ratio, Kroton''s shares would be distributed among the shareholders of Statius and the company at a rate of 15.7 and 84,3%, respectively.
Kroton ended the first quarter with 1.01 million students in the country, while the total of 588 1000 base released Statius students. Kroton''s face-to-face education operations more concentrated in the South, Southeast and Midwest of the country, while the Estácio has campuses in all Northeastern States and in some of the northern region.
The evaluation of Kroton by acquisition of Estacio happens after the company managed to complete the sale of the operation distance learning Uniasselvi, earlier this year, by 1.1 billion reais.
The sale of the asset was determined by the Administrative Council for economic Defense (Cade) as a condition for approving the acquisition of Anhanguera Educacional for Kroton, announced in 2013.