The Board of the Bolsa de Valores de Panama (BVP), and that of the Central Latinoamericana de Valores, SA (LatinClear), at their regular meetings of Wednesday August 12 and August 13, 2009, respectively, approved a corporate reorganization plan by which the BPV and the Central Latinoamericana de Valores, SA (LatinClear) will form a holding company. The shareholders of both corporations will be consolidated in this company.
Both BVP and LatinClear will remain as separate companies with separate operations and administrations, but with common shareholders. This corporate reorganization is subject to the approval of the Shareholders Meeting which are to be hold soon for each company.
BVP and LatinClear are complementary parts of the stock market activity in Panama.
The BVP develops and operates the transaction and the formation of market volumes and prices while LatinClear operates the market custody system, payments, settlements and transfers.
The two companies are listed on the market and 82% of shareholders registered March 30, are common to both companies. The consolidation process requires the execution of intermediate steps to exchange the shares issued and in circulation od the two companies for shares in the new holding company and needs the approval of both the National Securities Commission and the Superintendency of Banks, and that of the shareholders of both companies.
