Shares of Brazilian private education group Anima Educação (ANIM3) plunged 32% in trading on Wednesday, wiping out recent gains and signaling sharp investor skepticism over the company's latest strategic move.
The selloff followed confirmation that Anima has agreed to repurchase Centro Universitário FMU for R$410 million (approximately US$73 million).
Shares of Anima Education had surged 10% on Tuesday, reversing a steep decline from the previous day.
The transaction, signed on July 14, effectively reverses a deal completed six years ago when the original seller divested the asset.
The buyback represents a significant capital outlay for the education provider, raising immediate questions about capital allocation priorities in a competitive market.
The market reaction stands in stark contrast to earlier trading sessions.
Shares of Anima Education had surged 10% on Tuesday, reversing a steep decline from the previous day.