By Carolina Mandl
SAO PAULO, Aug 14 (Reuters) – Brazilian software company Totvs SA TOTS3.SAon Friday launched a 6.1 billion reais ($1.13 billion) counteroffer for rival Linx SA LINX3.SA, challenging an agreement it struck to be acquired by payment processor StoneCo Ltd STNE.O earlier this week.
Totvs said it is offering one Totvs share plus 6.20 reais per Linx share and said it will remain as the listed company. This deal would value each Linx share at 34.09 reais, as Totvs shares closed at 27.89 reais on Thursday.
That represents slightly less than a 1% premium to StoneCo’s offer, also in stock-and-cash deal which values Linx’s share at 33.7625 reais each.
If approved, Linx’s shareholder would hold a 24% stake in Totvs after the deal.
Totus shares were up about 2% in early trading on the Sao Paulo stock exchange.
StoneCo’s proposal has been under scrutiny by Brazil’s securities regulator CVM and has also been criticized by some Linx’s shareholders because Linx’s CEO and other key board members would be paid more than 300 million reais in retention deals and non-compete agreements.
($1 = 5.3825 reais)
(Reporting by Carolina Mandl Editing by Brad Haynes and Christian Plumb)
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