Updated March 16th, 2024 at 08:46 IST

Brazil's MRV&Co contemplates separation of US arm, Resia

The division enables Resia to make independent decisions without financial impact on MRV due to accounting differences between Brazil and the US.

Reported by: Business Desk
Brazil real estate group MRV&Co | Image:MRV
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MRV considers Resia split: Brazilian real estate conglomerate MRV&Co MRVE3.SA is contemplating the separation of its US arm, Resia, in the near future, CEO Rafael Menin revealed on Friday. However, specific plans for this move were not disclosed.

The proposed division would enable Resia to undertake strategic decisions independently without impacting MRV group financially, owing to disparities in accounting regulations between Brazil and the United States.

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Resia, formerly known as AHS Residential, specialises in property development in Texas, Florida, and Georgia.

Addressing investors at an event, Menin hinted that such a move could enhance Resia's profitability for the current year.

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CFO Ricardo Paixao informed the media that potential options for the deal include a spin-off, separation, public listing, or bringing in a new partner. However, these details are yet to be finalised.

Acquired by MRV&Co in 2020, Resia recorded a net revenue of 31.1 million reais ($6.22 million) in 2023, which accounted for less than 1 per cent of MRV's total net revenue.

(With Reuters Inputs)

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Published March 16th, 2024 at 08:46 IST