Shares of PDG Realty, Brazil's largest home building company, rose on Monday following an offer from a local private-equity firm.
Vinci Partners announced plans to raise about 800 million reais ($405 million) for PDG Realty, up to 81 percent of which could come from the firm's investment funds, according to Reuters.
PDG's board and shareholders still need to review the proposal.
The proposal is supposed to "strengthen the capital structure of the company in order to face a shortage of credit to the sector" and help with the "payment of onerous debts which currently affect the results of the company,” Vinci Partners said in a statement.
PDG shares led gains on Brazil's Bovespa stock index, rising 7.5 percent on Monday to 3.90 reais and rallying 25 percent since Wednesday, when they hit a three-year low.
