GAFISA S.A. (BOVESPA: GFSA3, NYSE: GFA) (“ Gafisa ”), in compliance with the provisions of paragraph 4 to article 157 of Law n. 6.404/76 and CVM Instruction n. 358/2002, hereby publicly discloses what follows:
1. On October 2 nd , 2006, Gafisa entered into an Investment Agreement and Other Covenants (“ Investment Agreement ”), which established rules and conditions for Gafisa acquiring and holding shares of the corporate capital of Alphaville Urbanismo S.A. (“ AUSA ”), being the first stake equivalent to 60% (“ First Phase ”), increased to 80% in 2010 (“ Second Phase ”) and which shall reach 100% in 2012 (“ Third Phase ”).
2. The First and Second Phases have already been implemented and the preparations related to the Third Phase have started, including the hiring of economic and financial appraisals and calculation of adjustments provided for in the Investment Agreement, based on which the valuation for 20% of AUSA, will be equivalent to, a maximum amount of, R$368.7 million, subject to minor additional adjustments set forth in the Investment Agreement.
3. The Company and other shareholders of AUSA have not yet defined the structure to be used for the implementation of the Third Phase. The Company will keep all shareholders and the market informed of new events related to this matter.
If I were AUSA shareholder I would swap whatever money I settle and recycle it back into GFA at this half-decade bottom. Funny, In March Goldman issued his once-in-a-lifetime-opportunity-buy report…
All Brazilian builders are facing much lower profits and profits forecast, and delay on projects, an ugly trifecta! 1 year graph shows oversold but MACD still points more downside...I'm holding Sep 12 $ 5 calls waiting on an end of summer rebound!