Bertelsmann to Increase Stake in Afya

Rhea-AI Summary

Afya Limited (NASDAQ: AFYA) announced that Bertelsmann SE & Co. KGaA will purchase 6,000,000 Class B shares at US$26.90 each. This transaction follows a prior disclosure on March 7, 2022. After the deal, Bertelsmann will hold a 57.5% voting interest, while the Esteves Family will control 33.1%. The anticipated closing date for the transaction is May 4, 2022, pending standard closing conditions. This move strengthens Bertelsmann's and the Esteves Family's influence over Afya's decision-making processes.

Positive

• Bertelsmann will acquire a significant 6,000,000 shares, enhancing its ownership to 57.5%.
• The transaction price of US$26.90 per share suggests confidence in Afya's valuation.

Negative

• Post-transaction ownership concentration raises concerns of reduced shareholder influence.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited, or Afya (Nasdaq: AFYA), today announced that it was notified that an affiliate of Bertelsmann SE& Co. KGaA, or “Bertelsmann” has agreed to buy 6,000,000 Class B common shares of Afya at the purchase price of US$26.90 per share, pursuant to a binding offer made by Nicolau Carvalho Esteves, Rosângela de Oliveira Tavares Esteves and NRE Capital Ventures Ltd (together with Nicolau Carvalho Esteves and Rosângela de Oliveira Tavares Esteves, the “Esteves Family”), as previously disclosed to the market on March 7, 2022. Following the transaction, Bertelsmann and the Esteves Family will beneficially own 57.5% and 33.1% voting interest, and 31.0% and 17.8% of the total shares respectively, in Afya. The transaction is subject to customary closing conditions and is expected to close on May 4, 2022.

About Afya

Afya is a leading medical education group in Brazil based on number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering digital products to help doctors enhance their healthcare services through their whole career.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220422005632/en/

Investor Relations Contact:

Afya Limited

ir@afya.com.br



Media Contact:

Cíntia Moraes Marin

cintia.marin@afya.com.br

Source: Afya Limited

FAQ

What is the recent transaction involving Afya Limited (AFYA)?

Bertelsmann SE & Co. KGaA plans to purchase 6,000,000 shares of Afya at US$26.90 each.

When is the expected closing date for the Afya share transaction?

The transaction is expected to close on May 4, 2022.

What will be Bertelsmann's ownership percentage after the Afya transaction?

Bertelsmann will own a 57.5% voting interest in Afya post-transaction.

What is the significance of the Esteves Family's shareholding in Afya after the deal?

The Esteves Family will hold a 33.1% voting interest in Afya after the transaction.