SAO PAULO – The corporate news this Wednesday (1) highlights the news from CSN (CSNA3) that it has completed the acquisition of control of Elizabeth Cimentos and Elizabeth Mineração. Oi (OIBR3;OIBR4) announced Cristiane Barretto Sales as the company’s new director of finance and investor relations (CFO and DRI).
Meanwhile, in the commodities market, the drop in ore should once again affect Vale’s (VALE3) quotations on the Stock Exchange. Check out what to look out for:
CSN informed that its subsidiary, CSN Cimentos, has completed the acquisition of control of Elizabeth Cimentos and Elizabeth Mineração.
CSN informed about the operation on June 30, with the deal valued at R$ 1.08 billion, with payment in cash, capital injection and debt assumption.
Oi announced Cristiane Barretto Sales as the company’s new director of finance and investor relations (CFO and DRI).
The executive replaces Camille Faria, who left the company on Monday to assume the position of CFO at TIM.
As CFO and DRI, Cristiane will report directly to CEO Rodrigo Abreu. She will be “responsible for the continued implementation of the Company’s financial strategy and focus on the execution of its transformation plan, with an emphasis on optimizing and simplifying its operations, implementing a new financial discipline and completing all extraordinary operations now in progress, in line with Oi’s strategic plan disclosed to the market on July 19, 2021”.
Ambipar closed a new purchase, this time of 70% of Suprema Serviços Industriais, through its subsidiary Environmental.
“Suprema has been operating for 26 years in the management, handling and treatment of waste, co-processing, recycling recyclables, loading and transporting rock with a main focus on the mining sector,” he said in a statement.
Renner Stores (LREN3)
Renner informed that it has completed the acquisition of all the shares issued by Repass Intermediação de Negócios.
“Founded in 2015, Repass is an online platform for the resale of clothing, shoes and accessories that operates nationwide. It is a native digital startup focused on female audiences, B and C+, and with ESG at the heart of its business model, whose mission is to increase the life cycle of parts, generating positive environmental and social impact
in this process. It operates through a managed model, with curation of assortment and quality, and control over the entire consumer journey. The resale market has high growth potential and is one of the great trends in fashion retail, especially among younger generations”, points out the company.
Bemobi concluded the purchase of 100% of the share capital of Tiaxa (Zonamovil). According to the company, the “acquisition is an important step in the implementation of the strategic plan aimed at leveraging growth in digital services with an emphasis on microfinance and digital platforms, channels and geography”.
Eletrobras said on Tuesday that it will pay R$ 23.2 billion to the Union for the grants of 22 hydroelectric plants that will have contracts renewed, in a movement related to the company’s privatization process, after the federal government approved a resolution that defines the value of the economic benefit of the company’s new concession contracts.
According to the state electricity company, the National Energy Policy Council (CNPE) set the amount of R$ 62.5 billion as added value for the new electricity generation concession contracts for the 22 Eletrobras plants, as a condition precedent for capitalization from the company. Part of the added value, the R$23.2 billion will be paid to the Union by the capitalized Eletrobras or by its controlled companies through the power plants’ concessions.
Iguatemi (IGTA3) and Jereissati Participações ([ativo=JPSA3])
The independent committee created to analyze the proposed merger of Iguatemi by its parent company, Jereissati Participações, recommended raising the premium to be paid to minority shareholders. It was decided that the 10% premium initially proposed will rise to 16.4%.
With this, the boards of directors of Iguatemi and Jereissati approved the convening of a general shareholders’ meeting for October 1st. The controllers of both companies will abstain from voting, so that the transaction will be submitted for approval exclusively by the minority shareholders.
In June, Iguatemi and Jereissati Participações announced their intention to merge the businesses. In exchange, a 10% premium on the average share price in the previous 30 days was suggested.
During the 15th CCR Day, the company’s new board (led by Marco Cauduro, CEO) presented its recently approved 5-year strategic plan.
XP’s analysis team indicated that they were positively impressed with the sustainability-focused profile of the company’s presentation (a positive indication, in analysts’ opinion, of improved corporate governance).
“We highlight three main points: (i) growth remains at the center of the company’s strategy (with a focus on highways, urban mobility and airports), with the State of São Paulo back on the radar; (ii) airport platform under development; and (iii) real double-digit IRRs expected in recent projects. We reiterate our positive view on toll roads in Brazil and the preference for CCR in the sector”, they point out.
Credit Suisse has updated its discounted cash flow (DCF) based model for Vitru. The bank maintained a neutral valuation (perspective of valuation within the market average) and raised the target price from US$15 to US$19, compared to Tuesday’s quotation of US$16.91 for VTRU shares on Nasdaq.
For 2021, the bank says it expects an income of R$ 2.48 per share, compared to the previous expectation of R$ 3.34.
The bank says that Vitru is already one of the largest institutions in distance learning and that its student base has been growing significantly, by 30% in the second quarter, compared to the previous year. The bank emphasizes that, by incorporating UniCesumar, the company now has the second largest base of students enrolled in distance learning, and the third largest base in total. In addition, the company incorporates a medical campus for the first time.
Credit believes the company is well positioned to benefit from the growth of distance learning.
Agricultural SLC (SLCE3)
SLC Agrícola, one of Brazil’s largest grain producers, reported on Tuesday that the land owned by the company was valued at R$ 6.94 billion this year, a 75.2% increase over 2020.
According to a relevant fact, the result validates the company’s thesis that the return obtained with investment in land in Brazil would be positive.
According to an assessment conducted by the consulting firm Deloitte Touche Tohmatsu, the current value of the average arable hectare owned by SLC Agrícola corresponds to R$ 35,693.
Credit Suisse commented on SLC’s release of its land estimates for 2021, seeing it as very positive and in line with the bank’s view that strong soy price dynamics could lead to much higher land prices. The valuation of arable land was 85%, which boosts the net asset value (NAV in English) to R$44, compared to Tuesday’s price of R$40.74.
Dexco, formerly Duratex, said it had ended its share buyback program started on the 26th.
Five million shares were acquired, almost 2% of the total outstanding shares.
The company stated that its buyback program was aimed at meeting the obligations assumed for the next three fiscal years, arising from the stock option plans and long-term share-based compensation plans in force in the company.
(with Reuters and Estadão Content)
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