Neobank and super app wannabe Inter resumes listing plans in the US; company units rise in Brazil

For operations on Nasdaq, Inter's shares will be merged into Inter Holding Financeira.

João Vitor Menin, CEO of Banco Inter, next to the bank's logo projected on a screen 11/6/2019. Photo; REUTERS/Nacho Doce
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Brazilian neobank and super app wannabe Inter‘s units rose by almost 8% on Monday in B3 after the company announced the resumption of its plans to transfer the shareholding base to Inter&Co, which the group intends to list on the US stock exchange Nasdaq.

Inter, which provides financial services such as credit, investments, and insurance and has e-commerce operations, halted a similar process in December after requests for redemption by shareholders exceeded the BRL 2 billion threshold. At the time, the company said it would continue to seek corporate reorganization.

Inter announced on Friday the resumption of the movement with new terms and conditions. The limit for redemption options is R$1.13 billion, or 10% of outstanding shares.

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Under the new proposal, Inter’s shares will be merged into Inter Holding Financeira. As a result, for every six common and preferred shares of Inter, one redeemable preferred share of Inter Holding will be delivered. In the case of units, the ratio is two shares for one redeemable preferred share.

The redeemable preferred shares can be exchanged for R$38.70 in cash, or Brazilian Depositary Receipts (BDRs), which are receipts to be traded in Brazil backed by Class A shares listed in the US, Inter said.

Inter’s units (an asset that comprises common and preferred shares) closed with a rise of 4.42%, at R$ 17.26, the highest percentage increase on the Ibovespa this Monday (18).

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Inter has among its shareholders the Japanese SoftBank.

Guide Investimentos considered the resumption of the process positive, saying that the redemption option is favorable for shareholders. However, they believe the restructuring will again reach the rescue ceiling and may not materialize.

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