Cia. De Gas de Sao Paulo, Brazil’s largest gas distributor, jumped the most in three years after saying it plans to extend voting rights to all shareholders.
Comgas, as the company is known, surged 7 percent to 40.01 reais at the close of trading in Sao Paulo, the steepest advance since November 2008.
The company said today it plans to join BM&FBovespa SA’s Novo Mercado, a segment of the Brazil’s stock exchange that requires all shares have voting rights. Comgas intends to swap each of its preferred shares for one common share, according to a regulatory filing. The company will announce more details after it finishes preparing the transaction, the statement said.
“The move is positive, as it will probably improve liquidity,” Erick Hood, an analyst at SLW Corretora brokerage, said in a telephone interview from Sao Paulo. “Some investors, especially foreign ones, don’t like to buy shares that don’t offer voting rights.”
Comgas had said in a regulatory filing on Oct. 19 that it was studying the possibility of joining Novo Mercado.