Nubank will go private in Brazil and gives investors three alternatives

Nubank announces delisting in Brazil and gives investors three alternatives

Photo: Disclosure, Nubank

Nubank informed in a material fact that it has started the process of discontinuing the level III BDR (Recibos Brasileiros de Depósito) program and provides three alternatives for holders of receipts on B3. The procedures still depend on the approval of the CVM (Comissão de Valores Imobiliários) and the Exchange itself.

According to the company, the reason for the change would be to “maximize efficiency and minimize consequential redundancies of a public company in more than one jurisdiction”. The level III BDR program was the way the bank found to go public in Brazil and the United States at the same time, on December 9 of last year.

The bank does not intend to exit the domestic market completely and must remain listed with level I BDRs, which do not require registration with the CVM. For those who currently have BDRs traded, Nubank states that it will provide the exchange for level I receipts in the same amount; or by class A common shares traded on the New York Stock Exchange (at the rate of one share for every six BDRs), or sell the position in a facilitated sale process.

For now, shareholders do not need to do anything. The procedures are still pending approval by B3. Also according to the bank, there will be a period of 30 days, after all the steps of the process have been defined, for the investor to choose the most appropriate option.

About Abhishek Pratap

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