| Pecém Complex | The purchase of securities of ZPE Managing Company by CIPP S/A gives the port of Ceará greater possibility to attract more investments.
The Development of the Industrial and Port Complex Company of Pecém (Cipp S/A) has purchased for R$ 90,9 million over 10 million shares from the Managing Company of Export Processing Zone of Ceará (ZPE). This process means the strengthning of the state government company which manages the Industries Complex and the port operations located between the cities of Caucaia and São Gonçalo do Amarante.
In this sense, the ZPE becomes a wholly-owned subsidiary of Cipp S/A. This process is part of the government new phase to sign an agreement with the Port of Rotterdam International (PoRin), administrator of Rotterdam Port. In Rotterdam there is an industrial complex based on a private initiative although it is run by the state. Rotterdam holds 70% of the share capital and the Netherlands government the other 30%, the financial goals force the complex to be self-sustainable, without any use of public resources.
In Ceará, the idea is the state to become the majority shareholder as well, with 80% participation in the partnership and 20% assigned to PoRin. That’s why there was the acquisition of the ZPE shares, which has been proposed and accepted by the General Assembly of the Board of Directors of Cipp S/A chaired by César Ribeiro, secretary of Economic Development of the state, with all the shareholders as follows: Lúcio Ferreira Gomes, secretary of Infrastructure of the state, Danilo Gurgel Serpa, CEO CippS/A,José Élcio Batista, Chief of Staff of the State Government and Paulo César Feitosa Arraias, representative of the Development Company of Ceará State (Codece).
For the approval, it has also been presented by Ernst Young Company an evaluation report of the stocks value based on the methodology of discounted cashflow, taking into account the favourable opinion of the Audit Board. In the detailing of the purchase, each ZPE share cost R$ 9,08. In all, it was R$ 90,89 million paid for 10 million shares held by the state of which R$ 12,5 million still needs to be paid to it by signing a contract, and the remaining to be paid in 24 months. The other remaining eight shares, valued R$ 71,72, will be paid in a single tranche to the shareholders who hold them,.
During the General Assembly, César gave notice of Maria Izolda Cela’s resignation, (the vice-governor of the state of Ceará), from the position of Consellor of the Executive Board of Directors. Her shares, being common and preferred ones, were handed over free of charge to the stockholder Danilo Serpa.
To O POVO, the owner of SDE explains that the transfer of shares between government agencies is one of the consequences of the strategic change adopted by the Integration of Ports of Ceará Company (Cearáportos) to Cipp S/A. “This fact creates a mechanism of competitiveness and speed at the Pecém Complex. These mechanisms create areas with special arrangements as the one of ZPE” he says.
About the PoRin, the governor of Ceará State, Camilo Santana, talked on the radio O POVO/CBN shortly after yesterday’s interview: “We are neither selling nor undoing the state patrimony by signing the partnership with Rotterdam. The prevision with this partnership is Rotterdam participation with 20% in the agreement. There is neither negotiations of the patrimony or the sell of assets. Once Rotterdam starts doing investments, it starts increasing its share percentage” he says.
Concerning the term to sign the partnership, the governor says it should have been already signed but because of the election process occurred in the Netherlands, some representatives have been replaced. This is because, despite being a private enterprise, the administration management of the port is public in H. “All the issues, validations consultings, analysis have been solved in two parts. We are just waiting for the conclusion of bureaucratic procedures” says the governor adding that a confidentially clause in the agreement between the state and the port of Rotterdam International prevents him from giving more details.
Stock in a publicly-traded company that entitles holders to vote in the annual meeting, to elect the board of directors, and to generally exercise control of the company. While common stockholders are important in terms of their level of control, they have the least precedence in the event of liquidation. That is, if the company goes bankrupt, common stockholders do not receive any money until all bondholders, other debt holders, and preferred shareholders are paid in full. Likewise, common stock is not entitled to a guaranteed dividend. Common stock is also called ordinary stock.
Stock in a publicly-traded company without voting rights, but otherwise with more rights than common shares. Preferred stocks receive dividends before common shares and sometimes have guaranteed dividends, while common shares only receive the leftovers. Preferred stocks also have a prior claim on capital in the event of liquidation; if the company is liquidated, all preferred shareholders must be paid off before a single common shareholder. Some preferred stocks are convertible, which means they can be changed into common shares at a certain ratio so that even preferred shareholders without voting rights have the possibility of gaining them. Preferred stocks tend not to appreciate as fast as common stocks.
More about the transaction
The beginning of the negotiations to manage the port of Pecém started in March 2017 in Holland with the signature of a memorandum of understanding (MoU) between Ceará State and the port of Rotterdam International.
Fortaleza has some conditions similar to those appreciated by the Dutch, such as blending industry to port activities in the Cipp, including an Exportation Processing Zone (ZPE), the only enterprise operating in the country.
The partnership with the Dutch company should enable the transfer of Mucuripe tank park (fuel storage) to Pecém port.
The port of Rotterdam has an industrial, logistic and services complex connected by sea to the rest of the world and by land and inland waterways to the center of Europe.
Rotterdam industrial and logistic complex includes sheds, storage products tank, refineries, chemical, bioenergy and food industries, energy production plants (coal, gas, biofuel).
Located in the delta of the rivers Reno and Mosa and crossing countries like Germany, France, Austria , Switzerland, Belgium and the Netherlands, Rotterdam has a canal 45 kms long which flows in the North Sea and the Atlantic ocean.
The enterprise that manages the port of Rotterdam tries to create a port network in Europe, Indonesia (between the southeast of Asia and Oceania), Latin America, Middle East, the Caribbean, besides holding a 50% participation in the new port of Sohar, in Oman (Arabian Peninsula).
In Brazil, the Dutch port has a participation in the future construction of the Central Port, (in the state of Espírito Santo), an industrial port complex similar to the one in Rotterdam, which will mainly meet the demands from the states where live over 100 million people/customers such as Goiás, Minas Gerais, Mato Grosso, São Paulo, Rio and Espírito Santo. The beginning of activities is scheduled for 2020.