Despite having lost almost 85% of its market value in a year, the acquirer Stone is “definitely” not for sale, says the company’s president, Thiago Piau.
He admits, however, that the company can evaluate partnerships in the Tag register, as anticipated by Broadcast Column.
Piau also commented on the challenges, such as the free fall of Stone on the stock market – today, the company is worth R$17 billion on Nasdaq, compared to R$134 billion at the beginning of 2021.
Is Stone for sale?
The information is definitely not correct. The bank mentioned in these rumors (JP Morgan) is our longtime partner, and the law firm (Galdino & Coelho) works on a specific case for a client, without any relation to what has been aired.
What was Stone’s mistake in granting credit?
The main risk factor we considered was the materialization of guarantees offered by customers – the receivables from future card sales. The pandemic and distancing measures put pressure on shopkeepers, who began to look for ways to not honor their loans. In addition, the receivables registration system had numerous flaws that allowed for this leakage of collateral. We decided to stop the credit operation in July and remake the product.
Will the company become more selective?
We will resume soon. We will complement card receivables with other forms of guarantee from the merchant and his partners. With the more than 100,000 transactions we have carried out, we have learned to better distinguish between good and bad payers. The speed will also be different: we will advance more gradually.
Is the market undervaluing Stone?
There is a factor exogenous to the company: the increase in interest rates, which affects the market value of all assets in the economy. The effect of rising interest rates is greater for growth companies whose cash flows will materialize in the future, such as Stone.
Is the tag for sale?
Tag is an investment that affirms our commitment to the registry system, that it is possible to expand and cheapen credit. The company has been operational for eight months and we have seen significant progress in recent months. Tag is not for sale. As it is not our core business, we will be able to evaluate possible partnerships in the future.
The information is from the newspaper. The State of São Paulo.
Source: CNN Brasil
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