By Brazil Stock Guide – Axia Energia’s shareholders approved on Wednesday (1) the company’s migration to B3’s Novo Mercado, the exchange’s top corporate governance segment, marking a significant shift in its capital structure and investor strategy.
The move will eliminate preferred share classes PNA1 and PNB1, converting them into common shares with voting rights. The conversion ratio was set at 1.1 common shares for each preferred share, maintaining the current economic balance for preferred shareholders, who receive at least a 10% dividend premium over common stockholders.
By transitioning to Novo Mercado, Axia Energia aims to standardize shareholder rights, ensuring equal voting power and dividend distribution across its investor base. The company expects the change to enhance stock liquidity, provide greater flexibility in dividend policies and support improved credit ratings.
The initiative has been under evaluation since 2022 and was revisited late last year following a post-privatization restructuring process. Management identified a favorable window to advance the migration as part of a broader effort to strengthen governance standards.
Axia Energia will retain its PNC shares, a temporary class created for a previously approved R$30 billion bonus distribution. The company will also maintain a “golden share” held by the Brazilian government, granting veto power over specific strategic decisions.