JSL S.A. (“JSL” or “Company”), (B3:JSLG3), a publicly-held corporation, pursuant to the provisions of CVM Instruction 358 of January 3, 2002 (“ICVM 358”), hereby informs its shareholders and the market in general that, on this date, its Board of Directors approved the Company´s commitment to subscribe and pay the minimum amount of R$ 200,320,000.00 (two hundred million, three hundred and twenty thousand Reais) towards an increase in capital of Movida Participações S.A. (“Movida”), a publicly-held company controlled by the Company. In turn, Movida´s Board of Directors has approved an increase in Movida´s share capital, within the authorized capital limit, in the amount of R$312,558,219.28 (three hundred and twelve million, five hundred fifty-eight thousand, two hundred and nineteen Reais and twenty-eight cents), subject to partial approval (“Capital Increase”). Further information on the Capital Increase can be found in the Material Fact disclosed on this date by Movida.
The Capital Increase will allow Movida to strengthen its capital structure, ensuring better conditions for the company to continue operating amidst a scenario of political and economic instability in the country, implementing its business plans and remaining well-positioned to act in the car rental market. Along these lines, the Company´s investment in Movida, within the scope of the Capital Increase, is in line with the Company´s strategic plans to invest in the growing and transformational market of car rental, ensuring the continuity of Movida´s operations in this market and taking advantage of the increasing opportunities in it.
The decision of the Board of Directors of JSL is in line with other strategic decisions taken based on the awareness of the potential development of the companies of the JSL Group, such as the recent investment for the acquisition of all shares of Vamos (as per the material fact disclosed on June 08, 2018), based on the growth perspective of the rental market of heavy vehicles. In addition, JSL is focused on rebuilding the profitability of its Logistics services and on the sales growth already verified at our car dealerships, and for the time being, will no longer compete in public concessions that are not part of the current scope of the Company´s operations.
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