(Bloomberg) -- Ontario Teachers’ Pension Plan, one of Canada’s largest institutional investors, is set to unload its entire stake in Multiplan Empreendimentos Imobiliarios SA, the Brazilian mall operator it first invested in 2006.
The Rio de Janeiro-based company agreed to buy back about 90 million shares from the Canadian fund, in a deal that still needs shareholders’ approval. The remaining 21.2 million shares will be acquired by the controlling and founding Peres family, according to a filing. The fund is likely to rake in about 2.47 billion reais (US$450 million).
Even though the repurchase program may increase the company’s leverage ratio, the mall operator can still maintain its spending plans, focusing on expansions, said BTG Pactual’s Gustavo Cambauva in a note to clients.
The Canadian fund started it sells plans in April in a block trade operation held by Goldman Sachs’ brokerage firm.
Since going public in 2007, Multiplan’s shares rose 221%, compared to a 145% gain for Brazil’s benchmark Ibovespa index.
The shareholders’ meeting is scheduled for Oct. 21, according to Multiplan’s filing.
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