StoneCo Investing $471 Million in Digital Lender Banco Inter

High-profile Brazilian fintech StoneCo (NASDAQ: STNE) is gearing up for a big investment. The company announced Monday that it has signed a definitive agreement to invest in Banco Inter, a digital bank also based in Brazil. Stone is to invest up to 2.5 billion reals ($467 million) in the shares newly issued by the latter company. This will give StoneCo a stake of, at most, just under 5% of its peer.

Following that, StoneCo will act as a "cornerstone investor" in a follow-on public share offering. It will pay 57.84 reals ($10.82) per share in the issue.

Subsequent to this, the two companies will enter into an agreement under which StoneCo is to hold a six-year right of first refusal to any change of control in Banco Inter. This will conform with price thresholds that were not specified. StoneCo will also have a right to place one person on Banco Inter's nine-seat board of directors.

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Source Fool.com