Globo Cabo announced Tuesday, April 16, that Globopar, Bradespar, RBS and BNDESPar have signed an agreement to inject 1 billion reals (now about 434 million US dollars) in new capital and move to Level 2 in corporate governance under the rules applied by the São Paulo Stock Exchange (Bovespa). In addition, the signatories undertake to list on Bovespa?s New Market as soon as possible in accordance with the law and the company?s contractual commitments, and without incurring operating losses. The New Market entails the highest level of corporate governance, with maximum disclosure and transparency. All shares must carry voting rights, for example. The move reflects pressure from BNDES, the national development bank, and other key shareholders. It would have happened earlier if it were not for the restrictions on foreign capital in the Cable Act. The agreement should be seen as part of a lobby by Globo Cabo and its controlling shareholders, including Globo, to remove these constraints in the Cable Act so that the company can effectively trade in the New Market. Only Congress can pass the necessary amendments, of course. Another interesting point is that Net Brasil also signed the capitalization accord, as intervenor and consenting party. Net Brasil is responsible for Globo Cabo?s programming. Under the terms of the agreement future decisions on programming must be approved by at least one of the financial shareholders, BNDES or Bradesco.
Globo Cabo
