Brazil's Localiza proposes preferred shares, capital increase

About this update from Localiza Rent A Car Sa

Car rental company Localiza BMFBOVESPA:RENT3, with operations in seven South American countries, has proposed creation of registered, book-entry preferred shares that will have the same rights as the company's common shares, according to a securities filing on Saturday. Localiza, which has a 600,000-strong car fleet, said the new shares would also be convertible into common shares and redeemable "at the company's discretion, by resolution of the board of directors," under certain terms and conditions. Additionally, should issuance of the preferred shares be approved, the shareholders will be asked to decide on a capitalincrease in the amount of 2 billion reais ($367.71 million), the filing said.Localiza has called an extraordinary shareholders meeting, to be held on Dec. 29, to discuss the proposals. ($1 = 5.4390 reais)

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