2023-07-10 15:35:20 ET
XP ( NASDAQ: XP ) stock gapped down 3.8% in Monday mid-afternoon trading as the Brazilian investment bank announced the termination of its shareholders pact executed between XP Control, General Atlantic Bermuda, LP, Itaúsa S.A., São Carlos Investimentos, São Marcos Investimentos and, together with Itaúsa and São Carlos, ITB Holding and Itaú Unibanco Holding S.A, originally expected to continue until October 2026.
The stock is still up some 65% year-to-date, and its short interest, or the percentage of share float that has been sold short, stood at just 4.88%.
The termination, XP ( XP ) said, bolsters its corporate governance practices and the composition of its board of directors.
Specifically, Iupar Group will no longer have the right to nominate members to our board, but together with Itaú, they will still be required to adhere to the registration rights when selling their shares in the market.
In addition, Bermuda will maintain its right to nominate one board member as long as it maintains a minimum of 2% ownership in XP ( XP ). And XP's board will be reduced to 9 members (from 11).
More on XP:
- XP upgraded to Buy at BofA as earnings set to benefit from lower rates
- XP: On Track For A Rebound With Cheap Valuation, Catalysts
For further details see:
Why did XP stock dip today? Shareholders agreement terminated