Banco do Brasil RI

Investor Relations

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Is this price fair? What goodwill is BB paying for the merger?

The criteria for evaluating companies are in accordance with the law and good market practices, and the amounts established are advantageous for both parties, without prejudice to the minority shareholders of both BB and BESC.

The use of the market value to evaluate BB and the economic value for evaluation of BESC / BESCRI is the most viable way to arrive at a fair price for the business. This methodology is justified by the fact that BESC’s shares do not have sufficient liquidity to support a good market valuation. As an example, with the inputs we have, this exchange ratio, at the market value between BB and BESC, would be approximately 1 ON BB share for about 2 BESC shares.

Lastly, since it is a merger with exchange of shares, this transaction does not present any goodwill.

Updated 12/27/2018 at 03:45 pm