By Jeffrey T. Lewis
SÃO PAULO–Natura & Co. Holding’s shares rose 3.1% after the Brazilian cosmetics company said it agreed to exclusive talks with Aurelius Investment Advisory Ltd. over the potential sale of its The Body Shop unit.
Shares reached 12.88 reais, the equivalent of $2.58, and were up 7.6% from the end of last year through Friday’s close. Brazil’s benchmark Ibovespa stocks index was up 0.6% in mid-morning trading,
Natura said the terms of the possible sale are still under discussion and there’s no guarantee the talks will end in the divestment of the cosmetics and health and beauty aids vendor. Natura said in August that it was studying alternative strategies for The Body Shop, including its potential sale.
The news is positive because it came so soon after the company said it might sell The Body Shop, and it shows Natura is ready to discontinue non-core assets rapidly, said Citi Research analysts João Pedro Soares and Felipe Reboredo in a research note.
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