Analyst Summary
- Telefônica Brasil S.A. is implementing a reverse stock split at a ratio of 40:1, followed by a split of 1:80, without altering the company’s share capital value.
- The primary goal is to enhance the liquidity of the company’s shares and improve price formation by increasing the number of outstanding shares and adjusting the price.
- The reverse split aims to reduce operational and administrative costs, improve shareholder base management, enhance book-entry share registration and custody systems, improve information and communication to shareholders, and increase efficiency in distributing proceeds.
- Shareholders have from March 14, 2025, to April 14, 2025, to adjust their holdings into multiples of 40 shares.
- The operation will be implemented on April 15, 2025, resulting in 3,261,287,392 common shares without par value.
- Fractional shares resulting from the reverse split will be grouped and sold at auction on B3, with net proceeds distributed proportionally to holders of fractional shares.
- The reverse split will not change the total amount of securities traded on the American Stock Market (ADR), but each ADR will represent 2 common shares.