Fictor-Led Consortium Moves to Buy Banco Master With R$3 Billion Capital Injection

Overview

• Fictor says the offer includes acquiring all shares held by controller Daniel Vorcaro, replacing the leadership, creating a new board and renaming the bank to Banco Fictor.
• The transaction is subject to Banco Central and Cade approval, and the central bank said it had not been formally notified by Monday night.
• Reports describe a carve-up in which Will Bank would go to Mubadala and Banco Master de Investimentos to other foreign investor groups, while Banco Master S.A. would stay with Fictor and partners.
• The Fundo Garantidor de Créditos, which lent about R$4 billion to Master, is expected to take part in talks given its exposure and depositor guarantees remain limited to R$250,000 per CPF.
• All assets and liabilities, including high-yield CDBs that paid up to 140% of the CDI, are slated to migrate to the new institution, with due diligence done and contracts still being finalized.