Why does the exchange ratio only involve common shares, changing the rights of BESC shareholders?

The condition of BB of a member of the New Market of BOVESPA obliges it to comply with certain rules, among others, to the provisions of item 3.1 of the Novo Mercado Regulation, which prohibits the issuance of preferred shares.

Thus, to conform to the rules of the New Market, BB transformed all preferred shares (PN) into registered common shares (ON), which is why BESC’s preferred shareholders will have their rights modified. However, it is important to note that Banco do Brasil ON shares have the right to vote at General Meetings.

Updated 12/27/2018 at 03:46 pm