Business
Brazil's Fleury enters talks on new company with Oncoclinicas, Porto
Brazil's Fleury enters talks on new company with Oncoclinicas, Porto
About this update from Fleury Sa
Brazilian medical laboratory services company Fleury BMFBOVESPA:FLRY3 said on Monday it has joined a non-binding term sheet originally signed between healthcare firm Oncoclinicas BMFBOVESPA:ONCO3 and insurer Porto Seguro BMFBOVESPA:PSSA3 to form a new company.Fleury and Porto would jointly invest 500 million reais ($94.12 million) in the new firm through a holding company.Oncoclinicas would contribute its oncology clinics and debt totaling up to 2.5 billion reais.Equity stakes and governance rules would be decided by Fleury and Porto "in due course," Fleury said. The new company would issue 500 million reais in convertible local debt known as debentures, to be subscribed by Porto, Fleury or their new holding firm. Oncoclinicas has granted Fleury and Porto a 30-day exclusivity period to negotiate a definitive agreement. ($1 = 5.3126 reais)