Absolute e Unity ampliam fatia na CVC. “Apex é só mais um acionista”

Apex Partners' crisis has altered the ownership structure of CVC. The funds linked to the regional manager decreased their stake from 12.2% to 7.97% in recent days, creating room for Absolute and Unity Capital. GJP, the investment vehicle of the Paulus family, orchestrated the operation, holding about 20% of the travel operator.

Absolute was already an investor in CVC, while Unity had a small stake. Both saw an opportunity to enter. Gustavo Paulus, vice-chairman of CVC, told Brazil Journal that Absolute had been an investor in the company, and Unity had a small stake. Both were looking for a good entry point. Apex is facing a liquidity crisis, with a nearly R$1 billion reverse, after operations promising minimal returns linked to CDI if certain assets, such as CVC shares, did not perform.

The crisis led to the departure of Apex's founder Fernando Cinelli and CFO Eduardo Siqueira, and prompted the manager to seek creditor protection. The Apex position fell from about 15% to 7.97% due to operations maturing with securities given as collateral. Absolute and Unity, which did not have disclosed positions, remained independent investors.

The 7.97% held by Apex's funds remains bound by an agreement with GJP, which stipulates that their votes follow the guidance of Mare, the family office of the Paulus family. Despite Cinelli's departure, Paulus said the funds of the capixaba manager do not plan to sell their remaining stake. "I even asked: 'Do you want to sell? Because I have people who want to buy.'

But they said they will keep." The agreement imposes a two-year lock-up, until May 2028. Any sale before then requires authorization from GJP, as occurred in this week's operation. For Paulus, the crisis did not change CVC's relationship with Apex. "They had a problem and solved it, and they are minority shareholders like many others we have in the base," he said.

According to Paulus, the relationship between the two groups goes back to the end of the previous year, when Apex started building its position in CVC. At that time, CVC saw Apex as a relevant institutional investor with known partners in the market. "Nothing disqualified Apex." "It was a surprise for us all that happened," he said.

Apex increased its stake, and Cinelli was elected to the board in May. The agreement between GJP and Apex was signed to give more stability to governance. Cinelli only participated in two board meetings and resigned at the beginning of the month, shortly after the Apex problems became public. The Paulus family and CVC executives said they had no knowledge of Apex's remuneration model.

"It's something of their manager. We have no involvement," Paulus said. CEO Fábio Mader said the crisis had "zero impact" on the operation, including relations with employees, suppliers, and franchisees. The company sought banks, creditors, and main partners to explain the situation. "They bought on the stock exchange. Even Cinelli didn't manage the company, wasn't in the day-to-day, and stayed for two board meetings," Mader said.

Societal turbulence arrived just as CVC published the numbers for the second fiscal quarter. Annual consumption reserves grew 2.3% to R$3.9 billion, driven by a 7.2% advance in Brazil. Net revenue fell 6.5% to R$320 million. Part of the difference came from a lower take rate. Three factors weighed in: a greater mix of B2B, which has lower profitability; a higher share of air tickets; and a reduction in margin to keep travel affordable for consumers.

Expenses in Brazil fell 10.1% and would have fallen about 20% excluding non-recurring costs related to layoffs. Adjusted EBITDA in Brazil grew 4.7%, even with pressure on revenue, with a margin of 32.7%, the highest in the second quarter for the Brazilian operation. In Argentina, which represents 16% of CVC's sales, reserves fell 13.2% and revenue fell 17.6%, impacted by the peso's devaluation.

CVC also returned to generating positive operational cash flow, of R$60 million. Mader said July brought a first sign of acceleration: sales were the highest in two years, and sales at concept stores had the best performance of the period. Now, the company bets that technology can deepen efficiency gains. In October, CVC plans to launch a new platform that will integrate stores, website, and app, a model inspired by Chinese Trip.com.

The goal is to combine digital with the network of 1,600 stores, ensuring even the customer who shops online has a travel agent accompanying their journey. The post Absolute e Unity ampliam fatia na CVC. “Apex é só mais um acionista” appeared first on Brazil Journal.