Afya Announces Closing of $150 Million Investment from the SoftBank Latin America Fund

Rhea-AI Summary

Afya Limited (Nasdaq: AFYA), Brazil's leading medical education group, announced a significant investment from SoftBank Latin America Fund totaling US$150 million in Series A perpetual convertible preferred shares. This transaction includes the sale of 2,270,208 Class A common shares from Crescera Educacional and the Esteves Family to SoftBank, resulting in SoftBank owning approximately 8.4% of Afya's total shares (on an as-converted basis). Paulo Passoni of SoftBank will join Afya's board within the next 30 days.

Positive

• SoftBank's US$150 million investment strengthens Afya's capital position.
• SoftBank's interest indicates confidence in Afya's business model and growth potential.
• The appointment of Paulo Passoni to the board may enhance strategic direction.

Negative

• None.

News Market Reaction – AFYA

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In the trading session that priced this news, AFYA declined 2.93%, reflecting a moderate negative market reaction.

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NOVA LIMA, MINAS GERAIS, Brazil, May 03, 2021 (GLOBE NEWSWIRE) -- Afya Limited, or Afya (Nasdaq: AFYA), the largest medical education group in Brazil, today announced that SoftBank Latin America Fund (“Softbank”) closed on its purchase of US$150 million of Afya’s Series A perpetual convertible preferred shares set forth in the Certificate of Designations.   In addition, Crescera Educacional II Fundo de Investimento em Participações Multiestratégia and the Esteves Family also closed on the sale of 2,270,208 Class A common shares to SoftBank. In connection with such sale, Paulo Passoni from Softbank will be appointed as a board member of Afya within the next 30 days.

Softbank and its affiliates beneficially own approximately 8.4% of the total shares of the company (on an as-converted basis for the Series A perpetual convertible preferred shares).

About Afya

Afya is a leading medical education group in Brazil based on number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering digital products to help doctors enhance their healthcare services through their whole career.

Contact: Investor Relations: ir@afya.com.br

FAQ

What is Afya's recent investment announcement?

Afya announced a US$150 million investment from SoftBank Latin America Fund in Series A perpetual convertible preferred shares.

How much of Afya does SoftBank now own?

After the investment, SoftBank owns approximately 8.4% of Afya's total shares on an as-converted basis.

Who will join Afya's board after the investment from SoftBank?

Paulo Passoni from SoftBank will be appointed as a board member of Afya.

What shares were sold to SoftBank in Afya's recent transaction?

SoftBank purchased 2,270,208 Class A common shares from Crescera Educacional and the Esteves Family.