Business

Founders of Brazil's Linx allowed to vote on StoneCo's offer

The board's move reversed an October decision by CVM's office of public company supervision that said Linx's three founders could not vote at the meeting

Photo: Stone/Facebook.
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  • Some Linx shareholders have said they are concerned that the founders will receive special benefits;
  • Founders Menache, Nercio Fernandes and Alon Dayan hold a 14.4% stake in Linx.

Brazilian securities regulator CVM’s board of commissioners decided on Friday that the founders of software firm Linx will be allowed to vote at a Nov. 17 shareholder meeting that will decide on a takeover bid by card processor Stone.

The board’s move reversed an October decision by CVM’s public company supervision office that said Linx’s three founders, including CEO Alberto Menache, could not vote at the meeting.

READ ALSO: Brazilian Stone has a 30% rise in net profit in the 3rd quarter; and increases its offer for retail software platform Linx

Some Linx shareholders have said they are concerned that the founders will receive special benefits, such as non-competing and hiring contracts if a deal with StoneCo is closed.

CVM’s commissioner said the non-competing agreement and Menache’s hiring contract do not implicate special rights or conflicts of interest.

Founders Menache, Nercio Fernandes, and Alon Dayan hold a 14.4% stake in Linx.

READ ALSO: Brazilian fintech Stone closes deal to acquire Linx for BRL 6 billion

The securities regulator’s board has also denied a shareholder request to delay the Nov. 17 shareholder meeting.

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