Home » Petz (PETZ3) announces merger and shares rise above 37%; understand

Petz (PETZ3) announces merger and shares rise above 37%; understand

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Petz (PETZ3) announces merger and shares rise above 37%;  understand

The actions of Petz (PETZ3) closed at a significant increase of 37.14% this Friday (19), quoted at R$ 4.80. The shares were put up for auction this morning due to the maximum fluctuation allowed. The trigger was merger announcement with Cobasi, who are working to bring the businesses together and create a giant in the animated animal sector. The Ibovespa, in turn, rose 0.75%, to 125,124.30 points.

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The agreement, anticipated by Broadcast, was disclosed after the announcement of a non-binding memorandum of understanding (MoU) for the possible business combination. Negotiations have been going on for more than three years, according to found out the Estadão.

Petz, owned by businessman Sergio Zimerman, was born after a failed attempt to be a Cobasi franchisee. The solution was to open its own store in 2002. Last year, the company recorded gross revenue of R$3.8 billion, in 249 stores. Cobasi, in turn, reported revenue of R$3.1 billion, with 234 stores. Now, Zimerman will finally be able to join his trajectory with that of Cobasi.

If the deal is closed, Petz and Cobasi will merge between equals, with each company holding 50% of the new company. The union could generate gross revenue of R$6.9 billion, 483 stores and at least 20 brands, such as ZeeDog, Petix, Flicks and Spike!, as anticipated by the Broadcast with sources familiar with the subject.

Paulo Nassar, from Cobasi, will become executive president and Zimerman will become president of the Board. In a conference call with investors this morning, Zimerman said the two companies will have the energy and ammunition to move forward. “Petz and Cobasi are going through a war that is bleeding companies and they will stop wasting ammunition,” he said. “With Cobasi and Petz united, we will deliver superior returns to shareholder capital.”

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According to Ativa Investimentos, the merger is positive for the companies. “Both companies have aggressive store opening plans, and the merger brings with it savings in this sense, given that, previously, where a Petz or Cobasi store opened, there was a chance that the competitor would open a store nearby. With the merger, this competitive need is eliminated”, states Ativa.

It is worth remembering that the consummation of the transaction is subject to negotiation and execution of definitive documents, compliance with certain precedent conditions, such as approval by the Administrative Council for Economic Defense (Cade), and the carrying out of legal, operational and accounting due diligence. and financial.

Zimerman gave a interview with Estadão in March for the series ‘DNA of Leadership’. In it, the São Paulo native from Brás reports ups and downs in his professional career, from his first business, as the clown Salsicha, to the venture that reached the Stock Exchange.

*With information from Broadcast

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