September 23, 2016 / 1:42 PM / a year ago

BUZZ-Brazil's Marcopolo: shares rise after New Flyer stake sale

** Shares in Brazilian bus body manufacturer Marcopolo SA rose on Friday after it booked profits on part of its investment in Canada’s New Flyer Industries Inc

** Marcopolo remains the largest shareholder of New Flyer with a roughly 10.8 pct stake after selling 4.5 million common shares, the company announced on Thursday

** Credit Suisse analysts led by Felipe Vinagre estimated Marcopolo will book about 449 million reais ($140 million) in proceeds from the sale

** That “should be more than enough to counterbalance the approximately 240 million reais in net debt related to the incorporation of Neobus,” they wrote in a Thursday report

** Analysts with Brasil Plural Corretora said they expect Marco Polo’s Q3 earnings to “soar” on the deal. They estimated Marcopolo posted a roughly 400 pct gain on the New Flyer investment made in 2013

** Common shares rose 3.9 pct to 2.69 reais in morning trade, extending gains to 58 pct this year

$1 = 3.22 Brazilian reais

0 : 0
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