Amec positions itself about CVM’s decision on Oi case

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Amec – the Association of Capital Market Investors – has intensively studied the restructuring operation of Oi S.A., announced on October 2, 2013, and the decision taken by the Brazilian Securities and Exchange Commission (CVM) on March 25, 2014, which led to the holding of an Extraordinary General Meeting on March 27, 2014.
An Extraordinary Meeting of Amec’s Technical Commission was held on April 10 so that members could analyze the case. Economists and attorneys who are part of Amec’s technical team, as well as members of the entity’s Board of Directors, studied and debated every point of the case. Based on this analysis, the Association of Capital Market Investors sent a letter to CVM with its arguments and conclusions about the corporate restructuring of Oi S.A.
In the document, the association clearly states it is contrary to the decision taken by the majority of CVM Board’ members: “The decision suggests that merely formal procedures of publicly-held companies can be used to unjustifiable dilute those who believed in the company in which they invested and, ultimately, in the Brazilian securities market.”
In the letter, Amec also highlights that the company’s assets are valued over their market value in the appraisal, and that the acceptance of such hypothesis by the regulatory body allows the transfer of controlling shareholders’ debts to the company and, accordingly, to all shareholders, primarily to minority ones.
To read the letter to the CVM Board, click here.