ITUB - Itau Unibanco buys 35% stake in Avenue for R$493M

• Itau Unibanco Holding ( NYSE: ITUB ) has entered into a share purchase pact , through its subsidiaries, with Avenue Controle Cayman Ltd and other selling stockholders, providing for the acquisition of control of Avenue Holding Cayman Ltd.
• The Brazil-based firm will initially acquire 35.0% of the total and voting capital of Avenue through a capital contribution of R$160M and a secondary acquisition of shares, totaling ~R$493M.
• After 2 years from the closing date of this first tranche, Itau Unibanco will acquire an additional stake of 15.1%, for an amount to be determined based on a predefined multiple of adjusted revenues, achieving the control with 50.1% of the total and voting capital.
• After 5 years from the closing date of the first tranche, Itau Unibanco will be able to exercise a call option for the remaining equity interest held by the current stockholders of Avenue.
• Avenue holds a U.S. digital securities broker, incorporated 4 years ago, aimed to democratize the access of Brazilian investors to the international market and currently has over 229,000 active clients, 492,000 accounts enabled and approximately R$6.4B under custody.

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