ERC says there are “reasonable doubts” as to whether GMG identifies all assets

The ERC states that the application of Section 14 procedures of the Transparency Law is due to the fact that there are “reasonable doubts” about Global Media and the owners “identify the entire chain” with qualified participation.

The Regulatory Council of the Social Communications Regulatory Authority (ERC) at an extraordinary meeting on Monday approved the opening of an autonomous administrative process for the application of the Transparency Act and the opening of an informal inquiry procedure into certain matters at Global Media. Group (GMG).

According to the discussion published today “Opening of administrative proceedings on the application of Article 14 of the Transparency Law – identifying the chain of imputation of shareholdings in the Global Notícias – Media Group”, the regulator intends to “verify the lack of mandatory reporting.” the entire distribution chain of qualified Global Media holdings.

And it explains “the application of the procedures described in Article 14 of the Transparency Law, given that there is reasonable doubt that Global Media and its owners have identified the entire chain of entities to which qualified participation should be attributed.”

In addition to notifying “shareholders, administrative and control bodies and the chairman of the board of the general meeting of the enterprise,” the Regulatory Council also decided to “give UTM the powers [Unidade da Transparência dos Media] to instruct the process, namely the procedures described in section 14 of the Transparency Law.”

On September 21, World Opportunity Fund (WOF) acquired 51% of the shares of Páginas Civilizados, the direct owner of Global Media, obtaining 25.628% of the shares and voting rights in Global Media.

The obligations imposed by the Transparency Act “require the reporting of percentages of public participation (financial shareholding) and percentages of voting rights when they indirectly correspond to at least 5% of the share capital or voting rights in the company owning the media,” the ERC reminds.

ERC “notified WOF’s representative and Global Media’s agent requesting clarification regarding the fund’s ownership, but without any result,” the regulator said, noting that WOF “only reports that its share capital remains at 51%.” . UCAP, without reporting the ownership of the remaining 49%, which corresponds to the impossibility of identifying the entire chain of persons who should be assigned qualified participation (Transparency Law, Article 14, No. 1.).”

The Foundation also indicated that “its voting rights are fully (100%) exercised by UCAP, which corresponds to the non-identification of the entire chain of entities to which qualified participation should be assigned,” according to the same article as “Transparency.” Law.

UCAP – “allegedly the controlling shareholder of WOF and presumably the owner of 100% of the voting rights of WOF – and therefore an indirect holder of the relevant shares (at least voting rights) in Global Notícias – Media Group, SA (Global Media), does not report about his own arrest, that is, he does not report on the rest of the chain of imputations.”

Now, “the combination of these reporting deficiencies, when supported by other information contained in the Request, constitutes sufficient cause to raise reasonable doubt as to the identity of the persons holding (directly or indirectly) the qualified assets” in Global Media. .

The discussion was approved “unanimously at an extraordinary meeting of the ERC Regulatory Council on 8 January.”