Azzas 2154 Potential Unsolicited Offer For Hering? An Unlikely Deal Unless Under Rich Valuation

Research evidence excerpt

Azzas 2154 Potential Unsolicited Offer For Hering? An Unlikely Deal Unless Under Rich Valuation

J P M O R G A N Latin America Equity Research

23 June 2026

Azzas 2154 Neutral

AZZA3.SA, AZZA3 BZ

Potential Unsolicited Offer For Hering? An Unlikely Deal Price (23 Jun 26):R$20.10

Unless Under Rich Valuation Price Target (Dec-26):R$24.50

The news: According to local news (link), the Hering family reportedly hired an LatAm Retail & Healthcare

ACadvisor to negotiate the purchase of the Hering brand operations from Azzas 2154 Joseph Giordano

(N-rated) – current Basics business unit. Hering was sold to Grupo Soma for R (55-11) 4950-3020

$5.5bn back in 2021, before Soma merged with Arezzo to create Azzas 2154 in joseph.giordano@jpmorgan.com

2024. The operations were spearheaded by Hering family members for nearly 145 Banco J.P. Morgan S.A.

years until 2025, when Thiago Hering left the group (link to our comments). As per Nicolas Larrain

the report, the Hering family and potential associated investors would be open to (55-11) 4950-3472

nicolas.larrain@jpmorgan.com

a proposal to outright purchase the brand and its operations or to an arrangement Banco J.P. Morgan S.A.

in which, through a split of the operations, they would hold a larger stake in Hering.

Guilherme A. Vilela, CFA

There were no official releases made by the parties around the matter. (55-11) 4950-3059

guilherme.a.vilela@jpmorgan.com

Our views: Given the current convoluted environment within Azzas 2154 amid Banco J.P. Morgan S.A.

the existing arbitration between the two major shareholders, we believe the Giovanni Vescovi

company may be looking at all options. And, in our view, this potential move (55-11) 4950-2901

reported by the Hering family may have been triggered by the company’s giovanni.vescovi@jpmchase.com