1/2/2020
The Brazilian Securities and Exchange Commission CVM on December 3 issued a new rule (ICVM 616/19) changing certain rules on public offerings in Brazil.
The changes brought by ICVM 616/19 include:
- Publishing notices of public offering is now optional, except for public offerings involving change of control, in which case publishing of notice is mandatory (section 11);
- Purchasers are no longer allowed to interfere in public offerings involving change of control (section 12);
- Acquisition of shares representing 1/3 to 2/3 of outstanding shares are now allowed in case of public offerings involving increase of interest and public offerings involving delisting from special lists (section 15);
- A provision can now be included to provide that one single public offering involving more than one type of public offering must now be made at a price that meets the requirements of all types of public offerings involved (section 34); and
- CVM is no longer allowed to waive the requirements imposed in ICVM 361/02 pertaining the minimum and maximum number of shares to be purchased (section 35, revoked).
The new rule was published on the federal official gazette and entered into force on December 4.
