Natura & Co. Holding, the Brazilian cosmetics retailer, has recently announced that it has reached an agreement to sell its subsidiary, The Body Shop. As a result, Natura & Co. Holding's shares have experienced a significant increase of 5%.
At present, the shares are valued at 14.60 reais, equivalent to $3.01. Furthermore, this represents a 20% increase from the end of the previous year. It is worth noting that Brazil's benchmark Ibovespa stocks index has also observed a rise of 1.7% during mid-morning trading.
The sale agreement, facilitated by Aurelius Investment Advisor, has established an enterprise value of 207 million pounds ($254 million) for The Body Shop, according to Natura. Natura had acquired The Body Shop in 2017 and subsequently expressed its intention to sell the unit in October.
Itaú BBA analysts have estimated that the equity value of The Body Shop was approximately $200 million during the time of the announcement in October. They have also emphasized that this transaction will significantly streamline Natura's corporate structure and enhance its financial foundation.