SUZANO: BNDESPar Approves Company Plans To Improve Governance Standards

(RTTNews) - The BNDESPar, the investment arm of the Brazilian National Economic and Social Development Bank (BNDES), approved Suzano's proposal to migrate to B3's Novo Mercado - a Brazilian stock exchange market segment that imposes the highest available standards of corporate governance to Brazilian companies.

Suzano could not advance with its intention to migrate to the Novo Mercado segment without approval from BNDESPar, which holds a 6.9% stake in the company.

Suzano wants to convert all of the firm's preferred shares into common shares, in line with Novo Mercado guidelines, which also demand that minority shareholders have the right to sell their shares for the same price paid to the controlling shareholders if the company is sold.

Other Novo Mercado rules include the company's commitment to maintaining at least 25% of outstanding shares, the disclosure of complete financial reports, a monthly disclosure of transactions with securities by executives and controllers and, in the event of a capital closing, the repurchase of the shares of all the shareholders.

Shareholders should vote on the proposal on September 29.