SAO PAULO, Dec 28 (Reuters) - Brazilian rental car firm Cia de Locação das Américas and rival Unidas SA announced a cash and stock deal to create Brazil's second-largest car rental company, the companies said in a securities filing on Thursday.
After the deal, Locamerica, which will change its name to Locamerica-Unidas, will have a fleet of more than 100,000 vehicles and 234 rental car stores in Latin America´s largest economy. Unidas is a franchisee of Enterprise, owner of U.S. rental car brands Alamo, Enterprise and National.
Under the terms of the agreement, Locamerica will acquire a 40.3 percent stake in Unidas for 398.6 million reais ($120.7 million) from buyout firm funds Vinci Partners Investimentos Ltda., Kinea Private Equity Investimentos SA and Gavea Investimentos Ltda, which are exiting the company.
Fitpart Capital Partners Ltd will acquire 9.4 percent for 92.9 million reais.
The remaining 51.3 percent of Unidas shares will be converted into new shares equivalent to 29.9 percent of Locamerica´s capital, the filing said. Each remaining Unidas share will be swapped for 1.059096 Locamérica share.
The deal, which is subject to antitrust approval, may help Unidas and Locamerica face competition in a segment dominated by larger rivals Localiza Rent a Car SA and Movida Participações SA.
Current Unidas shareholders Principal Gestão de Activos e Consultoria Administrativa e Financeira SA and Enterprise Holdings Brazil LLC will join the controlling bloc of the resulting company.
Unidas had attempted to hold an initial public offering earlier this year but called off the transaction due to weak investor demand.
Shares in Locamerica have skyrocketed 200 percent this year, handily surpassing a 26 percent increase by Brazil's benchmark Bovespa stock index.
$1 = 3.30 reais Reporting by Bruno Federowski and Tatiana Bautzer; Editing by Bernadette Baum