The perception of risk for Brazilian container terminal operator Santos Brasil could fall upon next week's listing on the Novo Mercado segment of São Paulo stock exchange BM&FBovespa.

Starting Monday (Aug 22), Santos Brasil will need to comply with the Novo Mercado bylaws which boast the highest level of corporate governance for the local stock market, Brazilian paper Valor Econômico reported.

Besides smoothing out disputes between Opportunity and Multi STS, who are partners within the group, the transition to the Novo Mercado amends the existing shareholder agreement by converting preferred shares without voting rights into common shares with voting rights, according to the report.

The company's flagship project is the Tecon Santos container terminal at Santos port in the state of São Paulo, which has the capacity to handle up to 2mn TEUs/y.

The group is planning some 1.3bn reais (US$403mn) in investments at the terminal, the report said.

 

 

Tecon Santos container terminal (CREDIT: Santos Brasil).

 

In Q2, Santos Brasil posted a 5.72mn-real loss, compared with a 4.70mn-real profit in the same period last year.

 

Source: BNamericas

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