The Portuguese Securities Market Commission has decided to suspend trading in Benfica SAD shares while it awaits information on possible deals to sell the incarnated company’s share capital.

“The Board of Directors of the Portuguese Securities Market Commission (CMVM) has decided in accordance with Article 214 and paragraph b) of paragraph 2 of Article 213 of the Portuguese Securities Code to suspend trading in Sport Lisboa e Benfica – Futebol SAD shares, to include information”, can be read in one of two communiqués released by CMVM on Monday morning.

In other information sent to the markets, CMVM claims that in recent days “signs of various irregularities” have been made public that may affect the company, raising doubts about its shareholding, so investigations are underway. …

“In particular, CMVM is requesting clarifications and, where appropriate, the provision of information to the market for Luis Filipe Vieira, José António dos Santos, John Textor, José Guilherme, Quinta de Jugais and Sport Lisboa e Benfica.” …

The Market Regulator advises that as a result of due diligence with shareholders and other interested parties, “there are share transfer agreements, the implications of which on the distribution of voting rights have not been communicated to the Marketplace”.

“Thus, there are doubts about the transparency of the aforementioned qualifying shareholdings and, in particular, regarding the current definition of Benfica SAD’s shareholder structure,” notes CMVM.

The same statement mentions that there are “strong indications” that the shareholder José Antonio dos Santos, one of the four holders of Operação Cartão Vermelho and the largest private shareholder of SAD do Benfica, has entered into debt agreements to buy and sell shares to other holders of the respective stakes. participation, which would increase their share from 16 to more than 20 percent. These contracts, if they come into force, would significantly reduce or eliminate the qualified participation of other shareholders, among which, it is said, the construction company José da Conceição Guilherme and Quinta dos Jugais, Lda.

In addition, CMVM says there are “strong indications” that José António dos Santos has signed a sale and purchase agreement with US businessman John Textor to sell a 25 percent stake. This information has been circulated in the press over the past few days.

It is said that none of the transactions, even if they fall under the “suspension condition,” have been brought to the attention of the market.

“In these circumstances, given the failure to comply with the obligation to provide information on qualified holdings referred to in Article 16 of the Portuguese Securities Code, and the existence of reasonable doubts about the identity of the persons to whom they may be indicted, at this time, voting rights related to certain shareholdings in Benfica SAD, in accordance with the provisions of clause 1 of article 20 of the same Code, CMVM has already taken measures to restore the transparency of the said blocks of shares and hold violators accountable for violation of their rights. until transparency is fully restored, CMVM may decide to suspend the use of voting and equity rights inherent in the qualifying assets in question, ”justifies CMVM, which states that transparency is one of the“ core requirements. capital “and, the investigator however, it is necessary to provide the market with the information that the holders of the respective shareholdings or Benfica SAD were required to provide, even to another listed company in the market and at a time when there is a public offering on the subscription of outstanding bonds.

“CMVM will continue to monitor relevant developments that could affect Benfica SAD as a listed company, as well as an ongoing public offering of subscriptions to ensure that relevant information is available to the market by any appropriate means. or any surveillance intervention that proves necessary to adequately protect the integrity of the market and investors, ”he concludes.

(updated article)