VINCI PARTNERS ANNOUNCES SHARE BUYBACK PLAN

Rhea-AI Summary

Vinci Partners Investments Ltd. (NASDAQ: VINP) announced a share buyback plan to repurchase up to R$60.0 million of the Company's outstanding Class A common shares. The plan, approved by the board of directors, aims to replace the expired Legacy Plans and is expected to be financed with existing cash balances derived from Distributable Earnings. Buybacks will be made through open market transactions or privately negotiated purchases, in compliance with SEC rules. The company had 39,312,578 Class A common shares issued and outstanding as of February 6, 2024.

Insights

Financial Analyst

The authorization of a share buyback plan by Vinci Partners Investments Ltd. is a strategic financial move, typically aimed at increasing shareholder value. When a company buys back its own shares, it reduces the number of shares available in the market, which can lead to an increase in the earnings per share (EPS) ratio. This is because the net income is distributed over a smaller number of shares. Additionally, buybacks often signal to the market that the company's leadership believes the shares are undervalued, which can positively influence investor sentiment.

However, the effectiveness of such a plan depends on various factors, including the company's performance, market conditions and the execution of the buyback. It is essential to monitor Vinci Partners' future financial statements to assess the impact of the buyback on its balance sheet, particularly its cash reserves and distributable earnings. Investors should also consider the opportunity cost of the buyback, as the funds used could alternatively be invested in growth opportunities or other shareholder return mechanisms such as dividends.

Market Research Analyst

The announcement of a share buyback plan without a specified expiration date indicates a flexible approach by Vinci Partners, allowing them to respond to market conditions and internal cash flow needs dynamically. This could provide a stabilizing effect on the stock price during market volatility. The plan's reliance on existing cash balances derived from Distributable Earnings suggests a healthy liquidity position, which is reassuring for investors concerned about the company's ability to meet its short-term obligations.

It is also noteworthy that the buyback is being conducted in compliance with SEC Rule 10b-18 and Rule 10b5-1, which are designed to prevent market manipulation and ensure that companies engage in buybacks without taking advantage of non-public information. This regulatory compliance is critical for maintaining investor trust and market integrity.

Legal Expert

From a legal perspective, Vinci Partners' adherence to SEC Rule 10b-18 and Rule 10b5-1 is significant. Rule 10b-18 provides a 'safe harbor' for companies, allowing them to repurchase their own stock without being deemed to manipulate the market, as long as they follow certain conditions regarding the timing, price and volume of the transactions. Rule 10b5-1 allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. It provides defenses against charges of insider trading, as long as the plan was established in good faith while the insider was not in possession of material non-public information.

Investors should take comfort in the fact that Vinci Partners' buyback plan is designed to comply with these regulations, reducing legal risk and potential allegations of impropriety associated with buyback programs.

RIO DE JANEIRO, Feb. 7, 2024 /PRNewswire/ -- Vinci Partners Investments Ltd. (NASDAQ: VINP) ("Vinci Partners", the "Company", "we", "us", or "our"), the controlling company of a leading alternative investment platform in Brazil, announced today that its board of directors approved a share buyback plan to buy back up to R$60.0 million of the Company's outstanding Class A common shares which shall be executed through open market transactions or privately negotiated purchases. The plan is approved to replace the share buyback and repurchase plans approved by our board of directors on February 14, 2023 (the "Legacy Plans"), which expired on the date that the R$60.0 million buyback limit set thereunder was reached.

The new plan will not have specified expiration dates (other than when the R$60.0 million buyback limit is reached). Vinci Partners expects to finance the purchases with existing cash balances derived from its Distributable Earnings, which is not expected to have a material impact on capital levels.

Under the plan, buybacks may be made from time-to-time through open market transactions or privately negotiated purchases in compliance with SEC Rule 10b-18 and Rule 10b5-1. The specific prices, numbers of shares and timing of purchase transactions will be determined by the Company from time to time in its sole discretion. Under the plan, repurchases will be carried out through a broker acting as an agent of the Company, from time-to-time in open market and negotiated purchases, and in compliance with SEC Rule 10b5-1. In either case, buybacks are subject to market conditions, available liquidity, cash flow, applicable legal requirements and other factors. The plan does not obligate the Company or any agent to acquire any particular amount of Class A common shares, and may be suspended or discontinued at any time.

The Company had 39,312,578 Class A common shares issued and outstanding as of February 6, 2024.

About Vinci Partners

Vinci Partners is a leading alternative investment platform in Brazil, established in 2009. Vinci Partners' business segments include private equity, public equities, real estate, credit, infrastructure, hedge funds, special situations, and investment products and solutions, each managed by dedicated investment teams with an independent investment committee and decision-making process. We also have a corporate advisory business, focusing mostly on pre-initial public offering, or pre-IPO, and merger and acquisition, or M&A, advisory services for Brazilian middle-market companies.

Forward-Looking Statements

This press release contains forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside of our control. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. The forward-looking statements included herein speak only as at the date of this press release and we do not undertake any obligation to update these forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, neither we nor our affiliates, officers, employees and agents undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time.

USA Media Contact 
Kate Thompson 
Joele Frank, Wilkinson Brimmer Katcher  
+1 (212) 355-4449

Brazil Media Contact 
Danthi Comunicações  
Carla Azevedo (carla@danthicomunicacoes.com.br) 
+55 (21) 3114-0779

Investor Contact 
ShareholderRelations@vincipartners.com
NY: +1 (646) 559-8040 
RJ: +55 (21) 2159-6240

View original content:https://www.prnewswire.com/news-releases/vinci-partners-announces-share-buyback-plan-302056667.html

SOURCE Vinci Partners Investments Ltd.

FAQ

What is the purpose of the share buyback plan announced by Vinci Partners Investments Ltd. (VINP)?

The purpose of the share buyback plan is to repurchase up to R$60.0 million of the Company's outstanding Class A common shares, replacing the expired Legacy Plans.

How will Vinci Partners finance the share repurchases?

Vinci Partners expects to finance the purchases with existing cash balances derived from its Distributable Earnings.

What are the methods through which the buybacks will be executed?

Buybacks may be made through open market transactions or privately negotiated purchases in compliance with SEC Rule 10b-18 and Rule 10b5-1.

What factors will determine the specific prices, numbers of shares, and timing of purchase transactions?

The specific prices, numbers of shares, and timing of purchase transactions will be determined by the Company from time to time in its sole discretion, subject to market conditions, available liquidity, cash flow, applicable legal requirements, and other factors.

Is the Company obligated to acquire any particular amount of Class A common shares through the buyback plan?

The plan does not obligate the Company or any agent to acquire any particular amount of Class A common shares, and may be suspended or discontinued at any time.

How many Class A common shares were issued and outstanding as of February 6, 2024?

The Company had 39,312,578 Class A common shares issued and outstanding as of February 6, 2024.