A Kora Health (KSRA3) announced this Sunday (5) that its controlling shareholders requested the convening of an extraordinary general meeting to vote on the company’s voluntary exit from Novo Mercado, a special listing segment of B3. The request waives the need to carry out a public offer for the acquisition of shares (OPA).
With this, Kora would migrate to the basic listing segment of the Brazilian stock exchange.
The meeting request also included the decision to reform and consolidate the company’s bylaws, subject to approval of the withdrawal from the Novo Mercado.
In the letter, Kora shareholders state that, like other companies in the sector, it has been facing a difficult scenario over the last few years, worsened by the financial crisis in health plans and the high interest rate in Brazil. “Due to the company’s current leverage, this has drained a fundamental part of the cash generation that should be allocated to operations”, they say.
In the controllers’ assessment, these challenges have intensified and have put pressure on the share price, which has accumulated drops of 34.62% since the beginning of 2024 and 74.63% in the last 24 months.
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Why do shareholders want Kora Saúde off the Novo Mercado?
For Kora’s controllers, participation in B3’s Novo Mercado “restricts some of the alternatives available for financing and expanding their activities”.
Among them are the possibility of raising funds through the issuance of preferred shares and carrying out business combination operations with national and foreign companies that are not currently part of the Novo Mercado.
Furthermore, they mention that, since the IPO, Kora has had difficulty maintaining the minimum percentage of shares outstanding (free float) required by Novo Mercado. “After more than one exemption grant by B3, it currently has a free float corresponding to 20.291% of the share capital, practically equivalent to the minimum allowed for the segment”, they say.
“Such a situation also creates obstacles to the potential realization of private capital increases that depend on the participation of the controlling shareholder (given that the non-exercise of preference by other shareholders could generate non-compliance with the free float minimum), as well as the adoption of other relevant strategies of interest to the company, such as the possible repurchase of shares issued by it”, they add.
Shareholders believe that voluntary departure will make a decisive contribution to the execution of
Kora’s financing and growth strategies, in addition to allowing the reduction of regulatory costs and the simplification and optimization of the organizational structure.
See the statement
Source: Moneytimes