The award recognizes the company’s follow-on offering
São Paulo, December 12, 2019 – BR Distribuidora was the winner of the 2019 Amec Corporate Events Award, granted by the Association Capital Market Investors (Amec). The nomination made by the association represents the recognition by minorities investors of BR Distribuidora’s subsequent offering (follow-on offering) conducted in the end of July, 2019. BR Distribuidora was the first company privatized via the capital markets in Brazil.
The Amec Corporate Events Award is aimed to identify corporate events that have a positive impact on the capital markets. The winner is chosen by the association’s members, who vote by secret ballot. Today, Amec gathers approximately 60 institutional, local and foreign investors.
“The Amec Corporate Events Award reflects the collective opinion of the association’s eligible members, expressing our stance on supporting the agenda that acknowledges the value of the Brazilian capital markets,” explains Fábio Coelho, Amec’s CEO.
According to the company, after the completion of the follow-on offering, the holding Petrobras reduced its participation in BR Distribuidora’s capital from 71.25% to 37.5%. The operation had an immediate effect on its liquidity: the quantity of outstanding shares doubled.
The higher liquidity translated into a more diversified and active investors base, also with respect to the nomination of candidates to the new Board of Directors. Prior to the operation, the Board was composed by 10 members, 5 of which nominated by Petrobras, 1 by the Ministry of Economy and 1 by the employees, meaning that minority shareholders were left with 3 seats only – a composition established in the company’s bylaws.
In the new configuration, after the review of the company’s bylaws – intended to make all the necessary adjustments for the day following the follow-on offering – the total number of seats in the Board of Directors was brought down to 9, of which at least 50% to be occupied by independently-elected members. Members will have diversified profiles and complementary experiences, in line with the Novo Mercado’s requirements. Additionally, the election of the board’s members is now based on the total number of votes, that is, the elected members will be the candidates with the higher number of votes.
Amec (the Association of Capital Market Investors) was founded on October 26, 2006, as an initiative by independent and financial institutional investors to defend the rights of minority shareholders and promote the development of the Brazilian stock market. To achieve its objectives, Amec fosters debates and discussions among its members, following strict internal governance guidelines, including the management of conflicts of interest. Issues are discussed by its Technical Commission and subsequently submitted for decision by the Management Board and Board of Directors. In the more than 10 years since its creation, the association has become the main discussion forum for institutional investors with regard to corporate governance practices and investor rights in Brazilian companies, in line with the latest recommendations across the world. At the same time, Amec recommendations have been increasingly gaining the recognition of investors, companies and regulatory bodies given the association’s relevance and independent approach. Learn more in www.amecbrasil.org.br.