Material Fact: Strategic participation in Avenue

Rhea-AI Summary

Itaú Unibanco has entered a share purchase agreement to acquire control of Avenue Holding Cayman Ltd, initially buying 35% for R$160 million. After regulatory approvals, a secondary acquisition brings the total to R$493 million. In two years, they will acquire an additional 15.1%, reaching 50.1% control. Avenue, a digital securities broker, aims to enhance Brazilian investors' access to international markets, with over 229,000 active clients and R$6.4 billion under custody. This aligns with Itaú's strategy to build a comprehensive investment ecosystem.

Positive

• Itaú Unibanco's acquisition strategy is bolstered by gaining 35% control of Avenue, enhancing its investment offerings.
• The acquisition will allow Itaú Unibanco to tap into Avenue's client base of over 229,000, promoting foreign investment access.
• Avenue's established presence will aid in providing international investment services, increasing Itaú's market relevance.

Negative

• None.

SÃO PAULO, July 8, 2022 /PRNewswire/ -- Itaú Unibanco Holding S.A. ("Itaú Unibanco") informs its stockholders and the market that today it entered into a share purchase agreement, through its subsidiaries, with Avenue Controle Cayman Ltd and other selling stockholders, providing for the acquisition of control of Avenue Holding Cayman Ltd ("Avenue").

After obtaining the required regulatory approvals, Itaú Unibanco will initially acquire 35.0% of the total and voting capital of Avenue through a capital contribution of R$160 million and a secondary acquisition of shares, totaling approximately R$ 493 million. After 2 years from the closing date of this first tranche, Itaú 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, Itaú 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 thousand active clients, 492 thousand accounts enabled and approximately R$6.4 billion under custody.

In line with initiatives already announced, such as the acquisition of Ideal Corretora and the launch of the Íon platform, this operation strengthens Itaú Unibanco's strategy of setting up an investment ecosystem that prioritizes customer satisfaction by providing products and services through the most convenient channels for each client profile.

Avenue's investment intermediation services offered through Itaú Unibanco's wide distribution franchise and client base will enable (i) the increased access to the foreign investment market and the functionality of opening an international current account, (ii) the international diversification of products and services through a simple, streamlined self-service experience, and (iii) the reliance on Avenue's renowned professionals' talent and expertise.

The operation and management of Avenue will remain separate from Itaú Unibanco, which will become one of the institutions that will make Avenue's services available to its clients abroad.

The completion of this operation is subject to the approval from the regulatory bodies in the proper jurisdictions.

RENATO LULIA JACOB
Group Head of Investor Relations and Market Intelligence

Media Contact: Itaú Unibanco - Corporate Communication, Phone: (11) 5019-8880 / 8881, E-mail: Imprensa@itau-unibanco.com.br

View original content:https://www.prnewswire.com/news-releases/material-fact-strategic-participation-in-avenue-301582888.html

SOURCE Itaú Unibanco Holding S.A.

FAQ

What is the purpose of Itaú Unibanco's acquisition of Avenue?

Itaú Unibanco aims to enhance its investment ecosystem by acquiring control of Avenue, which provides digital securities brokerage services.

What percentage of Avenue is Itaú Unibanco acquiring initially?

Itaú Unibanco is initially acquiring 35% of Avenue Holding Cayman Ltd.

How much is Itaú Unibanco investing in the acquisition of Avenue?

Itaú Unibanco is investing a total of R$493 million for the initial stake in Avenue.

When will Itaú Unibanco control 50.1% of Avenue?

Itaú Unibanco will control 50.1% of Avenue after an additional acquisition in two years.

How does this acquisition benefit Itaú Unibanco's clients?

The acquisition will improve access to international investments and diversify products available to Itaú Unibanco's clients.