Shares of Natura & Co. Holding have seen a 3.1% increase after the Brazilian cosmetics company announced exclusive talks with Aurelius Investment Advisory Ltd. regarding the potential sale of its popular brand, The Body Shop.
Promising Performance and Upward Trend
This news comes as Natura & Co. Holding's shares reached 12.88 reais ($2.58), marking a 7.6% increase since the end of last year. In comparison, Brazil's benchmark Ibovespa stocks index experienced a 0.6% rise during mid-morning trading.
Natura has not disclosed the terms of the potential sale, emphasizing that the negotiations are ongoing and no guarantees have been made. However, this move aligns with the company's previous announcement in August, where alternative strategies for The Body Shop, such as a potential sale, were being explored.
A Positive Outlook
Analysts from Citi Research, João Pedro Soares and Felipe Reboredo, view this development as a positive step for Natura & Co. Holding. They note that the willingness to swiftly divest non-core assets demonstrates the company's readiness to adapt and optimize its portfolio.