Business · Companies · 5 hrs ago
Centaurus fund asks court to overturn CVM share-offer order for Oncoclínicas
Josephina III, a fund linked to US investment manager Centaurus, is challenging Brazil’s securities regulator in court over Oncoclínicas, a Brazilian healthcare company.
In late August, the CVM ordered the fund to make a public offer to buy shares from other investors, saying it had crossed a 15% ownership threshold set by the company’s rules.
The order set October 24 as the deadline for the offer, which could be worth tens of billions of reais.
Josephina III argues the regulator used the wrong procedure, that the dispute should go to private arbitration, and that Centaurus was not formally included in the process.
The fund wants a court order suspending the CVM decision while its case proceeds in a federal court in São Paulo.
Oncoclínicas’s largest individual shareholder, Latache, supports the regulator’s decision and says the dispute affects shareholders’ rights.
Centaurus fund Josephina III has sued to overturn a Brazilian securities regulator order requiring it to make a share offer to Oncoclínicas shareholders.
The CVM ruled that the fund crossed a 15% ownership threshold set in the company’s bylaws.
The fund argues that the regulator failed to follow proper procedures and that the dispute should be handled through arbitration.
Latache, Oncoclínicas’ largest individual shareholder, says the CVM decision should be respected.
The CVM set 24 October as the deadline for the offer.
- Who
- Josephina III, a fund managed by Centaurus, sued the CVM. Latache supports the regulator’s decision.
- What
- The fund is seeking to overturn an order requiring it to make a public share offer to Oncoclínicas shareholders.
- When
- The lawsuit was filed on 10 September. The CVM set 24 October as the deadline for the offer.
- Where
- The case is before the 21st Federal Civil Court in São Paulo, Brazil.
- Why
- The CVM found that the fund crossed a 15% ownership threshold requiring an offer under Oncoclínicas’ bylaws. The fund disputes the regulator’s process and says the matter should be arbitrated.
Josephina III / Centaurus
Latache and the CVM
CVM order
Josephina III / Centaurus
The fund says the CVM could not order an offer in an administrative process it views as consultative.
Latache and the CVM
The CVM determined that the fund crossed the 15% threshold and must make the offer.
Process
Josephina III / Centaurus
The fund says the regulator failed to follow procedural rules and that Centaurus was not formally called to participate.
Latache and the CVM
Latache says the CVM’s unanimous decision should be respected.
Dispute forum
Josephina III / Centaurus
The fund argues the issue should be resolved through arbitration.
Latache and the CVM
Latache opposes the effort to overturn the decision in court.
The CVM opened an administrative process after a request from Latache to examine whether an offer was required.
The CVM board ordered Josephina III to make a public offer to other Oncoclínicas shareholders.
Josephina III filed its lawsuit in federal court.
The CVM deadline for the offer is set to fall.
- Fund
- Josephina III, managed by Centaurus
- Regulator
- Brazil’s CVM
- Ownership threshold
- 15% of Oncoclínicas’ capital
- Court
- 21st Federal Civil Court, São Paulo
- Offer deadline
- 24 October
What people are saying
Latache Capital believes the unanimous decision of the CVM’s board should be respected, especially by those who litigated for several months before the capital markets regulator itself to discuss the issue.