Bloomberg News

PDG Rallies as Investor Proposes Cash Injection

May 28, 2012

PDG Realty SA Empreendimentos e Participacoes, Brazil’s biggest homebuilder by revenue, rallied as much as 13 percent after saying a shareholder proposed injecting 800 million reais ($405.2 million) into the company.

Shares climbed to 3.98 reais, or a gain of 11 percent, at 10:20 a.m. in Sao Paulo, after rising to as high as 4.07 reais.

Vinci Partners Investimentos Ltda proposed to invest in PDG by issuing warrants that may be convertible into shares and bonds, according to a regulatory filing today. The offer amounts to 4.02 reais per share,

The homebuilder called for an extraordinary shareholder assembly at a later date to approve the plan.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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