Zion Invest is divesting 40% of its stake in Cortel Holding, Brazil's leading private cemetery and funeral services operator, aiming to create a new investment vehicle for professional investors, supported by a significant premium on the original investment.

Information on the Target

Zion Invest is set to divest a portion of the equity held by one of its real estate investment funds in Brazil's leading private cemetery, mausoleum, and funeral services operator, Cortel Holding. This strategic move will involve the sale of 40% of the shares owned by Brazilian Graveyard and Death Care Services (CARE11), equating to 734,000 shares, for an estimated total of R$ 38.6 million, translating to R$ 52.62 per share. This sale marks a significant return, representing a 42.4% premium over the initial purchase price established in 2018.

Cortel Holding operates eight facilities across three states and eight municipalities in Brazil, catering to the cemetery and funeral service needs of the region. The funds raised from this transaction will be distributed as dividends over the next 12 months. The current market value of CARE11 shares was reported at R$ 0.86, reflecting a 33.3% year-to-date decrease as of 2020.

Industry Overview in Brazil

The funeral service industry in Brazil operates within a context of cultural significance, as the country grapples with a diverse demographic profile and fluctuating mortality rates influenced by socio-economic factors. Recent trends indicate a gradual s