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Brazil's Banco Pan prices follow-on share sale at 8.25 reais - sources

Brazilian lender Banco Pan SA priced its preferred shares at 8.25 reais ($1.98) in a follow-on share offering on Thursday, three sources with knowledge of the matter said.

By Carolina Mandl and Marcela Ayres

SAO PAULO/BRASILIA, Sept 19 (Reuters) - Brazilian lender Banco Pan SA BPAN4.SApriced its preferred shares at 8.25 reais ($1.98) in a follow-on share offering on Thursday, three sources with knowledge of the matter said.

The offering raised roughly 1 billion reais ($240 million), an amount split evenly between shareholder Caixa Economica Federal and Banco Pan, said the sources, who requested anonymity to discuss a private transaction.

Caixa Economica Federal, which controls the mid-sized bank jointly with Banco BTG Pactual SA BPAC3.SA, had wanted to reduce its stake as part of a larger strategy of selling non-core businesses, according to the state-owned lender.

The follow-on priced at a roughly 8.3% discount to Banco Pan's existing shares, which closed at 9 reais in Sao Paulo on Thursday.

Banco Pan has said it intends to use the proceeds to strengthen its business, mainly its loan book.

The investment banking units of Caixa Economica Federal, BTG Pactual, Morgan Stanley MS.N and Banco Santander Brasil SA SANB11.SA managed the offering.

($1 = 4.17 reais)

(Reporting by Carolina Mandl and Marcela Ayres Editing by Shri Navaratnam and Jane Wardell)

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