BRAZIL: Brazil Takeover Panel to begin operating in August

Friday July 5 2013

It has been reported that the Brazilian Takeover Panel will commence operations in August 2013. The Panel will apply and update a Self-Regulation Code that contains principles and rules that complement applicable law and regulations enacted by the Securities and Exchange Commission of Brazil (CVM).

Among the principles contained within the Code will be the equal treatment among shareholders; mandatory disclosure of information that is necessary for considered and independent decision-making; independence, discretion and impartiality of its members; and consistent information in appraisal reports.

According to a Cooperation Convention to come into effect between the Brazilian Takeover Panel and CVM, there will be the presumption of legitimacy of public offerings subject to registration with the government body, and corporate restructurings involving related parties, which follow the procedures established in the Self-Regulation Code.

This information will be updated as further details become available.