Brazilian cosmetics manufacturer Natura &Co announced on Thursday that it is in exclusive discussions with asset manager IG4 regarding a potential sale of Avon's operations outside Latin America, boosting its stock value. In December, Natura revealed plans for its international operations, considering options like a sale, partnerships, or spinoff.
Initially planned in early 2024, these efforts were briefly paused last year due to a Chapter 11 filing by its U.S.-based non-operating holding, Avon Products (API). Natura clarified that negotiations with IG4 are in early stages and it is exploring other strategic possibilities.
Following the news, Natura &Co's shares in Sao Paulo rose by approximately 3.5%, outperforming the Bovespa stock index. Analysts at JPMorgan highlighted that shedding Avon Intl aligns with their investment strategy by simplifying operations, anticipating increased cash flow from Latin America, and potentially delivering higher dividends.