Tuesday , March 21 2023

Qualicorp shares jump 36% of the mind behind the company: why so much fun?


Health Insurance

SAO PAULO – In a session with so much emphasis on sharing the final rights of results, the one that attracted the most attention was a company that did not disclose its figures for the second quarter of 2019, but issued a statement with even greater impact. explosive for your assets.

This is Qualicorp (QUAL3), which saw its shares jump 36.64% to $ 30.06 after Rede D & # 39; or São Luiz announced the acquisition of a 10% stake in the health insurance company. And one detail in the operation draws attention: the purchase will be documents belonging to the founder and CEO of the company, José Serpieri Filho, better known as Junior.

Such a jump in assets led to another remarkable session on Qualicorp's actions. On October 1, 2018, QUAL3's shares closed 29.37% shortly after the company's significant fact, with the announcement of a contract between Seripieri Filho not to sell shares and compete in business.

The news was particularly unwanted by investors this session because of the terms of the deal. In order not to sell 13.7 million shares in the company (which corresponds to 32% of its total stake in the company) and not create a competitor for a period of six years, the founder of Qualicorp would receive $ 150 million in cash from the company.

This has led to a great deal of uncertainty about corporate governance over the agreed values, except for the fact that there is no rumor that Seripieri may sell the shares (incidentally, a sale that is happening now, but without breaking the rules of the agreement). The only plausible justification for this at that time was how important Junior was to the health plan leader's directions. Despite strong doubts about the company's direction after the event, the name of the CEO is viewed with suspicion by investors, while the operation even generates lawsuits against the company.

Following the controversy, Junior pledged to acquire at least 150 million shares, and the Board decided that further related party transactions involving the company and the shareholder would be approved by the shareholders meeting. These measures are well received, but many investors are still careful with the paper.

Thus, less than a year later, the prospect that the CEO will leave the company makes the shares perform as strongly as they did in this October 2018 session.

Until the transaction is concluded, Seripieri Junior will continue as Chairman and Member of the Board of Directors of Qualicorp. However, once the deal is approved, the executive must leave the board and "will remain as an indirect shareholder holding shares representing approximately 9.9% of the company's capital."

The sale of these securities, however, "does not change Seripieri Junior's non-compete obligations, which was the subject of an agreement with Qualicorp last October," the company said in a material fact.

"Leaving Junior and joining the network, which has excellent performance and reputation, greatly improves the management of the company," says a manager with a corresponding involvement in the company's assets.

Expectations for improved corporate governance were also underlined by JPMorgan, which raised the recommendation for overweight to overweight securities, raising its target price from $ 24.50 to $ 35. The US bank lowered the recommendation. just last October, and now there is a buyback recommendation stating that joining a strategic partner and leaving Seripieri is likely to further improve the management improvements already seen.

New horizons

In addition, JP points out that while Junior is mindful behind the creation of Qualicorp and has important relationships with the industry, analysts do not see "personalized surgery" at this stage of the company. That is, leaving him would not shake her course so much.

According to the BBI's assessment, the current CEO may contribute as a member of the Board of Directors, given his experience, but his future in the company still looks uncertain. According to the manager, heard by InfoMoney, he will naturally leave the company.

Some analysts still see a lot of uncertainty about the company's post-surgery strategy and are still wary of the documents. On the other hand, as JP points out, Rede D & # 39; Or is a strategic partner and is led by a former Qualicorp CEO who can help greatly in synergies.

"Heraklito Gomez, current CEO of Rede D & Or, has extensive industry experience, managing Qualicorp for two years (2010-2012) and also serving at Bradesco Saúde, one of the top 5 health care providers This is how potential interactions with Qualicorp are well known to D & Or, "says the JP analysis team.

They could come from creating a plan integrated with QSaúde's (Qualicorp Health Plan) initiatives and accelerate the implementation of SulAmérica's plans to use Rede D & Or as a major partner in the Qualicorp platform, which currently does not exists. sell them.

In addition, according to the manager, Rede D & # 39; or heard from InfoMoneyGiven its influence with the operators, this can greatly assist in the strategy of creating plans that respond to the client's pocket and thus cause Qualicorp to increase its customer base again. "Today, Qualicorp's main problem is lack of growth," he said.

After some turbulent times, Thursday's news was very positively received by investors and analysts, as it not only took on a major asset pricing problem, but also opened the horizon for new products. New times are coming for Qualicorp.

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