Business
Shares in Brazil's Odontoprev, Bradesco jump on major healthcare deal
Shares in Brazil's Odontoprev, Bradesco jump on major healthcare deal
About this update from Banco Bradesco Sa
Shares in Brazil's Odontoprev BMFBOVESPA:ODPV3 surged on Friday after controlling shareholder Banco Bradesco BMFBOVESPA:BBDC3 said it would combine all its stakes in healthcare businesses under the dental insurer, which will be renamed Bradsaude.Odontoprev shares jumped over 25% in early Sao Paulo trading, while shares in Bradesco rose around 3%.The new healthcare conglomerate will include brands such as Bradesco Saude, Odontoprev and Atlantica Hospitais, Bradesco said in a securities filing.According to Bradesco, Bradsaude has estimated annual revenue of 52 billion reais ($10 billion) and would have posted more than 50% average annual profit growth since 2022.Bradesco, one of Brazil's largest private lenders, will hold a 91.35% stake in the firm.Analysts at Itau BBA said the move would likely be accretive for Bradesco's capital, praising the rationale for creating a more independent vehicle in the sector."The new listed vehicle could help markets better appreciate the value of its healthcare operations, which have shown strong improvement in recent years," they said.($1 = 5.1623 reais)