Gafisa's purchase of Alphaville goes to arbitration court.
Companies disagree on the terms of the share issuance, and the dispute is being submitted to the Brazil-Canada Chamber of Commerce for resolution.
247 - The construction and real estate development company Gafisa announced this Wednesday, the 4th, that the purchase of the remaining stake in Alphaville Urbanismo has been referred to the arbitration court of the Brazil-Canada Chamber of Commerce for resolution of a controversy involving the deal.
Alphaville Participações requested the opening of the procedure because the companies did not reach a consensus on the interpretation of the share issuance terms, as stipulated in the agreement reached in October 2006.
Gafisa states that the total number of common shares to be issued in the process of acquiring the remaining 20% stake in Alphaville Urbanismo is 70.251.551, at a price of R$ 5,11, totaling R$ 358,98 million. Alphaville Participações believes that 97.055.876 common shares of Gafisa should be issued, at R$ 3,70, totaling R$ 359,10 million.
"The company was notified by Alphaville Participações about the protocol (...) filed with the Brazil-Canada Chamber of Commerce, requesting the initiation of arbitration proceedings to resolve the dispute," Gafisa informed the market in a relevant fact statement. "The issuance of new shares by Gafisa will depend on the final outcome of the arbitration."