Multiplan Empreendimentos Imobilarios SA, the renowned Brazilian mall operator, has announced that it would be repurchasing about 3.6 million shares or up to 4.5% of its total outstanding shares. The proposed transaction is expected to be worth 212.9 million reais or US$106 million according to documents filed with securities regulators.

The said buyback offer would end by May 14, 2014.

This comes as a strange move as just nearly a month ago, the company had just raised a total of 705 million reais or US$351 million from the sale of new shares during a follow on offer. All in all, the company had sold 10.8 million shares worth 58 reais each. There was a secondary batch of 1.35 million shares that was also subscribed in this transaction.

The proceeds from this offer would be used for expansion to bolster the company's capital base. The buyback offer would seem to be part of the expansion of its capital position,

For the buy back, the company had engaged the servcies of Banco Bradesco SA, Itau Unibanco Holding SA, BTG Pactual Group and the Credit Suisse Group to manage the transaction.