GPA shares (PCAR3) registered a trigger of more than 15% at Wednesday’s session (2), after already fired on Monday. The PCAR3 assets jumped 15.84%, at R $ 3.51, closing as the largest increase in Ibovespa, albeit away from the maximums of more than 20% of Intraday.
The movement occurs after the retailer’s announcement that the proposals to dismiss the current board of directors of the GPA and elect new members, presented by the Saint German Investment Fund, controlled by investor Nelson Tanure, received support from shareholders Casino Guichard-Perrachon and Ronaldo Iabrudi dos Santos Pereira.
The GPA, owner of the Pão de Açúcar supermarket chain, said it received letters from both shareholders expressing “its support for the request for convening an extraordinary general meeting of the company and the proposals submitted by Saint German Multimard Financial Investment Fund”, according to the relevant fact to the market.
The casino is an indirect controller of 22.5% of the shares issued by the company, while Ronaldo Iabrudi dos Santos Pereira holds about 5.50% of the GPA capital, according to letters attached to the relevant fact.
In a report released on Monday, after meeting of GPA executives with analysts, Citi stated that the main conclusion is that Tanure does not intend to make any significant change in the administration or priorities of the company’s short and medium term.
In this priority package, Citi cites greater disagreement, reduction of broader costs and operating expenses, including leasing and general and administrative expenses, and treat tax/labor provisions.
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“That said, we believe that the main issue is to unlock more recurring Free Cash Flow (FCF) after rents. Therefore, an active shareholder focused on resolving this issue can change the game to the GPA,” CITI said in a report signed by analyst João Pedro Soares.
Already in a report of the beginning of the week, JPMorgan pointed to believe that this movement could lead to a change of control, considering that the Casino group has already stated that its participation in the GPA is on sale, while news suggests that Tanure was seeking to buy it.
Analysts also point to a Short Squeezewhich is a movement in the stock market where the price of an stock increases rapidly due to high demand for it. This happens when investors who have sold the discovered (shorts) need to buy shares to close their positions.
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(with Reuters)