Experian’s “Full Brazilian” (Financial Times Headline 23/10/2012) saw shares rise to £10.87, before easing back to £10.71 in line with the FTSE in early trading this morning.  The deal which saw Experian pay $1.5bn for the remaining 30% (29.6% in reality as 0.4% reportedly remains “trapped” inside a company in the process of restructuring) was generally seen as a good deal for Experian, particularly as waiting longer could have seen the banks who owned the shares exercising a more expensive put option at a later date.  The deal bought the total that Experian has paid for Serasa to $2.8bn, having acquired a 70% stake in 2007 for $1.3bn.

For Experian the timing of the move was perfect, coming 5 days after the announcement that legislation had been passed to allow the use of positive consumer credit data in Brazil. For the Banks who sold the 29.6%, they have seen the value of their stake increase from $0.35bn. An increase of almost $1bn since Experian’s initial acquisition of 70% in 2007, benefiting from the expertise and knowledge that Experian brought to the business and the growth in the consumer credit market in Brazil.

To read the full story click on the link:  Experian’s full Brazillian

Courtesy Phil Cotter, BIIA Board Member and Contributing Editor