BTG Ends Banco Econômico Acquisition, Which Leaves Liquidation Out of Judiciary and Changes Its Name to BESA | Economie

BTG Ends Banco Econômico Acquisition, Which Leaves Liquidation Out of Judiciary and Changes Its Name to BESA |  Economie

a BTG charter Conclusion of the acquisition of Banco Econômico, leaving the extrajudicial liquidation and changing its name to Banco BESA SA in accordance with the material fact of Econômico, “the lifting of the extrajudicial liquidation of the Company has been approved with immediate effect.”

In another statement, BTG notified that it will submit to the Brazilian Securities and Exchange Commission (CVM) an application to register a consolidated public offer for acquisition (OPA) of up to all of the remaining common and Class A preferred shares in BESA. Deregistration as a public company that issues Class A securities (which allows for the issue of shares, among other securities) will also be requested.

Econômico was founded in 1843, in Bahia, intervened by the Central Bank in August 1995 and was extrajudicially liquidated. It was the oldest case of a bank subject to a special decision regime in Brazil.

When the decision to intervene was made, Econômico faced problems such as excessive concentration of credit operations, liquidity difficulties, undue revenue recognition, and insufficient capital. Since the publication of the real plan in 1994, the bank’s economic and financial situation has worsened with increasing defaults on the part of the largest debtors.

In substance released on Friday (7), Econômico also states that a capital increase has been approved, including through a contribution of current appropriations against the company itself, which was approved at the Extraordinary General Meeting (AGE) held on April 27 and was approved at the AGE which was held on July 6. The capital balance increased from R$ 500.741 million to R$ 668,857 million.

An amendment to the BESA Regulations has been approved to provide for the conversion of common stock and Class A preferred stock into redeemable Class B preferred shares of 311,657,790 Class B preferred shares.

In addition, the redemption of 311,657,790 Class B redeemable Preferred Shares has been carried out and new Directors have been appointed, who have already taken office.

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