Why the methodology used to calculate the economic value of BESC was that of discounted cash flow? And BB, how was it evaluated?

In compliance with art. 224 of Law 6404/76, to establish the share substitution relationship, BB was evaluated by the weighted average price of its shares in the securities market (last 90 calendar days of 2007), and BESC and BESCRI for the evaluation of the economic-financial value, calculated using the discounted cash flow method, using as base date 12/31/2007.

In compliance with art. 264 of Law 6404/76, the Bank of Brazil’s valuation was also carried out based on the discounted cash flow method, in order to verify if the criterion freely chosen by the parties, based on art. 224 of Law 6,404 / 76, would be beneficial to the minority shareholders of BESC and BESCRI. The evaluation concluded that, for economic value, BESCRI shareholders would receive 1 share for each 2,403,275,850 shares, while BESC shareholders, of the three classes of shares, would receive 1 share for each 18.31304592 shares.

The adoption of this second valuation criterion is intended to serve as an alternative parameter to the redemption value when the share replacement ratio freely chosen by the parties based on art. 224 of Law 6,404 / 76, is less advantageous to the minority shareholders of BESC and BESCRI.


Updated 12/27/2018 at 03:45 pm