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Havan sees its IPO cut in half due to political and corporate risks.

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Havan sees its IPO cut in half due to political and corporate risks.

A few weeks ago, Luciano Hang invited potential investors to visit Havan stores. The idea was to show the retail business model to large funds that would be the anchors (top investors) of an initial public offering (IPO). However, in fulfilling the plan of the stock exchange, Havana is adjusting to reality.

By submitting its IPO prospectus to the Brazilian Securities Commission (CVM) in 2020, the retailer intended to go public for R $ 100 billion. In March, the cost fell to 70 billion reais. Today, according to estimates of potential investors, the project has decreased to less than half: 45 billion reais.

Even so, Havan has a lot of problems. Experts draw attention to corporate governance issues and over-reliance on the face of their controller, known for his ardent support of President Jair Bolsonaro, to questions about the company’s transparency and information provided on the Investor Relations (IR) website.

The manager of a large fund in Brazil, who was invited on a tour and decided not to participate, says Khan’s political extremism could indeed be a negative factor for the IPO, seen as an important moment in the company’s management. “I have no doubt that if a fund is an anchor, it can boycott and demand a ransom,” he says. In the prospectus filed with CVM last year, Hang is presented as a risk factor. In any case, the IPO should wait, say sources involved in the process.

Corporate Governance: Last Minute Change

But there are other problems as well. Corporate governance, for example, is far from the practice of public companies. The board of directors consists of only three people, one of whom is Hang. This is consistent with the definition of Brazilian corporate law, but not the appointment of a collegial member of 5 to 11 members made by the Brazilian Institute of Corporate Governance (IBGC) for publicly traded companies.

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“This is the minimum number for a variety of competencies and expertise in technical knowledge,” says Luis Marta, Research, Content and Commissions Manager at IBGC, when asked about the ideal colleague. “The board cannot be too small for diversity to exist, and not too large for consensus.”

In addition, according to him, the IBGC recommends that the executive president should not be part of a collegial body, but regularly invite him to meetings. “The board of directors must act in the best interests of the company, even if its decisions conflict with the short-term goals of the shareholder,” he says. “There are meetings that need to be held without the presence of the CEO, and this is necessary to avoid embarrassment on both sides.”

In email replies, Havan says that although it is a private company with one shareholder, it has adopted a significant portion of Novo Mercado’s corporate governance rules. Among them is the board “which has an independent director who does not have a combined position of CEO and chairman of the board and has set up several committees to ensure our good functioning.”

However, until Thursday, there was only one committee on the public relations company website, formed by one person and without specifying his area of ​​responsibility. “It doesn’t make sense to have a one-person committee because there is no debate and the workload is incompatible with the role,” says Martha. After questioning the report, Hewan added two more people to the committee, which now has three members. A CFO was also added and Hang removed from the leadership.

Havan also states in the same email that while IBGC assumes that the CEO is not a board member, “a simple search on the IR websites of some of Brazil’s major publicly traded companies is enough to ensure that such a recommendation is overwhelmingly cases are not observed. “

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In any case, other methods adopted by public companies do not work at Havan either. Edson Diegoli, for example, is not only the director of investor relations and finance at Havan, but is also featured on the IR website as the managing director of other companies owned by Luciano Hang. Among them are four power generators and a shopping center manager, of which he is also a partner.

“Mr. Diegoli is totally committed to Havana. In other companies in the group in which he holds the position, he plays a strategic role without the need for physical presence, similar to the role of a board member in a public company. the company, “he wrote.” In addition, Havan is made up of people outside of the board who can not only support the operation, but also devote themselves to the IPO. “

Information about results on one page

The profit and loss press release, the so-called document that presents the company’s data to investors, has only one page. In most cases, IPO candidates are organized by the dozen. For example, the story from Privalia, another retailer trying to go public, is 30 pages long. There are also no balance sheets for previous years or the Havan listing prospectus on the IR website. You need to search for them on the Internet.

Havan responds by stating that it is not yet public and that disclosure of this information is optional. “If the Company does an IPO, it will issue a release it deems appropriate, in line with market best practices,” he says.

Without transparency, it is difficult to understand some of the numbers in the press release. Like the fact that the return on capital invested (ROIC) rose from 39.9% to 67.2% between 2019 and 2010. As well as how Havan managed to reach this level, as the percentage of competitors such as Through (suddenly Houses in Bahia) is 12%, and Lojas Americas is 4.16%.

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According to the company, the profit from the litigation was a one-off amount associated with the PIS / Cofins and ICMS calculation base, which affected the margin. “The above point affected the ROIC, which was higher than the previous year,” they write. Likewise, gross margins in 2019 were the same as in 2020, and cash-generating margins increased by 6 percentage points, even with lower sales due to the pandemic.

Net income was also adjusted from BRL 499 million to BRL 919 million with funds from the R $ 555 million FIDC fund, which is not owned by Havan but by Hang. “This is an adjusted net income, taking into account the potential perimeter in which a company that goes public to investors could be if the company were a FIDC holder, which is planned for the future,” the company said in a statement. In other words, a hypothesis from the point of view of an accountant who is immersed in numbers and asks not to be named.

The web has not yet made a digital turnaround

According to managers consulted Estadão / Broadcast Also in terms of anonymity, another problem with Havan’s business model is the fact that the network is very tied to physical stores and the concept of digitization is inconclusive. But that could change quickly as stores have managed to shorten delivery times for online sales. Havan Bank is also considered a growth trajectory.

Aside from corporate governance issues, the timing for an IPO is very volatile. Khan was called in to speak at CPI Covid this week due to his involvement in vaccine procurement negotiations.

On this occasion, in a note, the businessman said that he was “silent”.

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Politics

Fake news dampens political and election debate, Saretta says

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Fake news dampens political and election debate, Saretta says

Congressman Neody Saretta (PT) said this Wednesday (5th) in the Legislative Assembly (Alesc) that the dissemination of information that attempts to sway voters to lie, so-called fake news, is eclipsing pre-election and political debate. “We can’t just keep discussing recruitment, I don’t know what, we have to look at the reality of people who are suffering and hardworking and who are sometimes misled by some kind of false news.”

He recalled how strongly the system and electoral justice were attacked, but despite speculation and mistrust, “the system worked, people voted for whom they wanted, polling stations opened and votes appeared there, as a citizen contributed. ”

According to him, in the second round we will have the opportunity to really discuss the proposals. “Our candidate Desio Lima did well in the elections when he got through to the second round and I’m sure he will take part in the debate about what’s best for SC and our municipalities.”

The MP said that politicians have a mission to work to improve people’s lives and that much remains to be done. “We have people who cannot afford to buy their own food, who are squeezing their salaries from everywhere to get through the month. There are many people who need more effective action from our governments.”

He hopes that the second round will discuss what is best for the population, its conditions and quality of life, “so that the state can guarantee people more services and have a larger share of the national pie, since so much is collected and little is returned.”

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Thanks
Saretta thanked the people of Santa Catarina who believed and supported her candidacy, which allowed her to remain in the Assembly for another four years and continue the work that she is doing. “I thank those who participated in the electoral process, correctly, with dignity, as it should be,” he said.

According to him, walking around Santa Catarina and talking with the population during the action, many did not understand how the state fund has free resources and people continue to wait two or three years for admission, surgery, medical care. “Karma that cannot last,” he commented.

Similarly, while traveling on the roads, whether federal or state highways, the MP was reminded of the appalling traffic conditions that put those who work with their trucks, transport goods, as well as those who travel with their family or go on foot, at risk.

“Santa Catarina needs to take a closer look at these health and infrastructure issues. I defended it and took it as a real flag of life, because I understand that the key to any government is to serve the people, and health should come first.

Saretta drew attention to the problem of huge social inequality, which depends on the actions of the federal government, which cannot turn its back on those who have the least, those who need it most. “The population cannot be prejudiced against immigrant brothers, almost all of us are immigrants in one way or another, from the present or from the past, and we, unfortunately, see the spread of discriminatory ideas when we are all equal people.”

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Juliana Wilke
Collective consulting | Bench for physical education in Alesc | 48 3221 2824 [email protected]Twitter: @PTnoparlamento | Facebook: PT without Parliament

Source: Agency ALESC – Offices

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Political support for sports!

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Vila Nova deve estrear no Olímpico nesse Goianão 2022

In the 2022 elections, some sports-related names in Goiás tried to compete for a seat in the Legislative Assembly or in the National Congress, but did not succeed in the elections. Dante do Volei was not elected as a federal deputy, nor were Edson Automoveis, former councilor of Goiania, and Luis Bercuo, former president of the Goiás Basketball Federation, were not elected as state deputies. All of them have a list of relevant services provided to the Brazilian sport. They have earned a seat in Parliament.

Of the candidates strongly associated with sports, Daniel Vilela, who was elected lieutenant governor on the list of Ronaldo Cayado, succeeded. Daniel is a former professional soccer player. He has the right to represent the segment. Daniel Vilela is expected to have a strong focus on sports through the expansion of sports promotion programs in our state.

Goiás has interesting projects and sports support programs. Pro-Atleta is committed to serving high performance athletes; Construcindo Champions, a martial arts training program with about 7,900 students from Goiás; The Viva Mais Goias program targets seniors in 19 cities across the state.

The sports and parasports centers have been established by the State Department of Sports and Recreation (Seel) in cooperation with the municipalities of the hinterland. Also in partnership with the organizer of the championship of Spain, Seel implements the social project La Liga Goias with the distribution of sports materials in several municipalities of Goias.

Through Seel, the government promotes various sporting events and competitions. The Open Games of Goiás, the largest sports competition in the state, are designed for the participation of athletes from all the municipalities of Goiás in 21 uniforms. This year, the Quilombola Cup was created, which is held in six stages with the final in the city of Cavalcante.

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At the national level, the Senate approved Bill 940 of 2022, which extends until 2027 the tax benefits provided by the Sports Promotion Act (Act 11,438 of 2006). The rapporteur on this issue was the former player Romario, who was re-elected as a senator from the PL of Rio de Janeiro. In addition to extending the term, the Senate-approved rule increases the rates that companies and individuals can use in their annual income tax (IT) contributions and includes elementary, middle and high schools as fundraisers.

In the case of individual taxpayers, the new LIE increases from 6% to 7% of the IRPF due to the deduction limit as a donation or sponsorship for sports and parasports projects. This, together with contributions to funds for children and the elderly, to cultural projects and investments in audiovisual works.

In the case of companies, it increases the deduction limit for donations or sponsorships of sports and parasports projects from 1% to 2%. It also includes projects for social inclusion through sports, up to a collective limit of 4%, which is currently shared only between cultural projects and investments in audiovisual works.

I think laws and programs to encourage sports should go beyond sponsoring athletes and teams from different sports. They also need to contain strategies for social inclusion. Only in this way will the entire population benefit from physical and sporting activities, leading to a healthier life for all.

We hope that elected politicians will follow through on the promises made during the campaign and step up action in favor of sport. We want to see the plate!

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Portugal wants to give more voice to youth and promote women in politics |

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The Portuguese prime minister spoke to UN News about the opportunities and challenges in politics: internally, he is betting on the expectation of seeing a woman at the helm of government in the future, if the Portuguese choose to do so.

In foreign policy, Costa is in favor of expanding the exchange between young people from the Community of Portuguese-Speaking Countries, Corporal.

Reconstruct broke denomination

Antonio Costa was interviewed UN news at the end of September, when he participated in the debate of international leaders at the General Assembly.

Portuguese Prime Minister António Costa. Photo: UN//Mark Garten.

“Portugal is really proud. A week ago, the government was equal at the level of ministers. There was a small alteration in which parity was violated. In short, the prime ministers and presidents of the republic will be chosen by the Portuguese. I really hope that I will have a woman prime minister again. One already was. And who knows if there will be another one in the future. Let’s see.”

According to the government website, there are eight women in Costa’s current cabinet of 17 ministers. At the second level, there are 12 secretaries of state.

The only head of government in Portuguese history remained in office for about six months. María de Lourdes Pintasilgo was appointed by President Ramallo Eanes to the post and became the first and only woman to serve as prime minister. At that time, she was second in Western Europe after Margaret Thatcher, who came to power in 1979 and left in 1990.

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In the Assembly of the Portuguese Republic, out of 230 seats, 85 are held by women and 145 by men.

Crescent movement

António Costa also mentioned Portugal’s cooperation with the Community of Portuguese Speaking Countries, Cplp, and said that consolidating his position is one of the tasks that should remain a priority in the block of nine countries.

Flags of Portuguese speaking countries. Photo: cplp

“I see great opportunities to promote Cplp as an international political issue. I have noticed that there is a growing movement of countries wishing to become CPLP observers because they have realized that, unlike other international organizations, the CPLP must be geographically global. Almost every continent has a CPLP country. The fact that he has a great capacity for political articulation, and this is very beneficial. We supported each other in various international positions. This gives a very significant relative weight to the CPLP countries.”

Costa emphasized that the group of nations is connected not only by past relationships. Angola has been chairing the bloc since 2021.

“We must significantly improve economic relations. I think of many countries as examples of how relationships can be reinvented after such a long colonial period. By the way, longer than most others. So tough: we should not forget that for three years and at least on three fronts an absurd colonial war was waged, which ended only in 1974. So the ability is that we had the ability to reinvent ourselves in our relationships.”

Communication between young people

Costa also advocates for greater connection between young people from Member States who have a network and space to think about.

“Many European countries that I see see this relationship with Cplp as an interesting experience in overcoming and rethinking new relationships. And there is a big problem that we have: new generations. Fortunately, new generations have fewer memories, but also fewer connections with each other. We must create mechanisms to maintain these relations, and therefore I think that the mobility agreement is very important in order for these relations to continue to strengthen between our peoples.”

The purpose of the future mobility system is to establish short-stay, temporary and residence visas between Member States.

This year in New York there was no meeting of the leaders of the bloc, traditionally organized on the sidelines of the General Assembly.

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