GPA: Coelho Diniz family requests EGM to vote board dismissal

GPA: Coelho Diniz family requests EGM to vote board dismissal

In a significant move, the Coelho Diniz family has requested an extraordinary general meeting (EGM) at Grupo Pão de Açúcar (GPA), Brazil's leading retail chain, to dismiss the current board and elect new members. The family, which now holds a 24.6% stake in GPA, cited their proportional ownership as justification for the request [1].

The Coelho Diniz family, which controls Coelho Diniz Supermercados, a Minas Gerais-based chain with approximately 22 stores, has pledged to nominate technically qualified candidates to address GPA's challenges. The family's entry into GPA signifies a regional group gaining leverage in a national retailer, a notable shift in the company's shareholder dynamics [1].

GPA's current directors have unanimously supported calling the EGM within the legal timeframe, as the company's bylaws historically required a tender offer if an investor exceeded 25%. However, GPA has proposed removing this rule, and its current status remains unclear until the meeting notice is issued [1].

The family's move follows a year of governance changes at GPA, including a board reshuffle in May and growing influence from other investors. Former controller Casino reduced its role in 2024, opening the company to new shareholder blocs [1].

The market's reaction to these disclosures has been strong. On July 16, GPA shares jumped about 10% after the family revealed their 17.7% stake. Investors continue to view ownership structure as a decisive factor in GPA's outlook [1].

The EGM will also fill two fiscal council vacancies created by recent resignations, further underscoring the family's desire for a more active role in GPA's governance [1].

References:
[1] https://www.riotimesonline.com/coelho-diniz-family-moves-to-reshape-control-at-brazils-gpa-with-24-6-stake/