Disney’s new CEO, Copel’s privatization and what matters in the market

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In crisis, Disney calls ‘former’ Bob

In the midst of an internal crisis in the face of damage in the streaming sector, Disney unexpectedly announced the return of an old acquaintance at the helm of the company.

Bob Iger, 71, who stayed as CEO of the company for 15 years until leaving office in 2020, returns to take the place of his successor, Bob Chapek, who was summarily dismissed.

• The market liked the news. Disney stock, which has plunged more than 45% in the year to last week, closed 6% this Monday (21).

Which explains: Criticism of Chapek’s management has intensified in recent weeks, after the company’s balance sheet showed that the loss with streaming channels reached $1.5 billion in the quarter, much more than analysts expected.

• Not even the rise in the number of users above expectations cheered the market, and the day after the result, Disney shares plummeted 13%in the biggest drop since September 2001.

Iger’s missions: to revert investors’ bad mood, the company brought back a consecrated name, and whose management, characterized by defending Disney’s family image, was praised by shareholders.

• Iger will only stay in the chair for two years, but according to the Wall Street Journal, he should immediately reverse the former CEO’s option to make streaming a priority for the company.

• His biggest challenge in this period, however, will be not to make the same mistake of his last passage and choose the successor correctly.

Ratinho Jr wants to privatize Copel

The government of Paraná, controller of Copel, is interested in transforming the state’s energy company into a company without a controlling shareholder, the company announced this Monday to the market.

In practice, the announcement details the plans of Governor Ratinho Júnior (PSD) to privatize the company. In reaction to the news, Copel’s shares closed at a high of 23%🇧🇷

How will it be: if the process is approved by the Court of Accounts of Paraná and the legislative assembly, Copel will be privatized in a model very similar to what was done at Eletrobras, which was controlled by the Union until the middle of this year.

• Privatization would take place through the issuance of new company shares, a process in which the government of Paraná would not participate. Today, the state owns 69.7% of the voting shares and 31.1% of Copel’s capital.

• In privatization, the government would remain with at least 15% of the total share capital of the electric company, and 10% of the number of votes conferred by the shares with voting rights.

• He would also have a “golden share”, which gives the right to veto the deliberations of some matters at the general meeting.

Corporation: is the name given to companies without a defined controller. In the country, Eletrobras, Vale, Vibra (former BR) and Embraer are companies with this corporate arrangement.

According to this Monday’s communiqué, the State will “opportunely” present a bill to be deliberated by the Paraná legislature.

• Copel is one of the few state-owned electricity companies in the country, along with Celesc (SC) and Cemig (MG).

Energy startups against the grain of the market

For most startups, 2022 will be marked as the hangover year after the investment boom in 2021. This is not the case for Brazilian energytechs (energy startups).

Investments in these companies grew 134% until November of this year compared to the same cutoff of 2021 – a period in which the total volume of investments in startups fell by half.

In numbers: were $288 million (R$ 1.5 billion) raised by energytechs in 15 rounds this year, against $123 million (R$655 million) last year.

• In the entire startup segment, the total volume invested in the country was $4.1 billion (R$ 21.8 billion), half of what was calculated in 2021. The numbers were raised by the innovation platform Distrito.

Which explains: Investor pressure for the elimination of fossil fuels, combined with skyrocketing energy prices around the world, helped to leverage interest in energytechs.

In Brazilhowever, there is an even more significant attraction: the calendar.

• A law passed in January guaranteed subsidies to consumers who register their distributed generation installations – such as solar panels on rooftops – by January 7, 2023.

• This is the case of Órigo and SolFácil, the energytechs that raised the most investments this year –$201 million and $100 millionrespectively.

Heineken x Ambev: the fight at Cade

A dispute between Brazil’s two largest breweries for coveted bars in the country has been dragging on. Last month, Cade intervened in the fight with an interim decision while it investigates the case.

Understand the dispute: in recent years, Ambev, market leader in the country, closed several exclusivity contracts with “opinion-forming” bars – recognized establishments, with consolidated clientele, or that bring new concepts to the market.

• Heineken, which arrived here 12 years ago, recently started to sign the same type of contract, but decided to trigger Cade in March for what it considered an abusive dominance of the competitor.

• The antitrust agency, then, prohibited Ambev from signing new agreements of this type and renewing existing ones in regions where there was a “worrisome market closing index”, as in neighborhoods of São Paulo, Rio de Janeiro and Brasília.

• Restrictions also apply to Heineken in locations in Brasilia. See here the banned regions for each brewery.

Questioned about the impact of Cade’s decision, Ambev replied that it will continue to follow the measures and guidelines adopted by the autarchy.

How do exclusivity contracts work? These are agreements in which a company provides advantages to prevent the sale of competing products in the same establishment.

• Some of the benefits offered are the transfer of tables, chairs and refrigerators to the bars and even money to help with the renovation of the establishment or the opening of new points.

Who is who:

• Ambev: owner of 60% of the volume of beer sold in Brazil, it has brands such as Antarctica, Brahma, Skol, Corona, Beck’s, Stella Artois and Spaten.

• Heineken: with 22% of the market, among its brands, in addition to Heineken itself, are Eisenbah, Amstel, Devassa, Sol, Schin.