Latache Capital Activism Targets Usiminas, Oncoclínicas, BRF

Latache Capital, a prominent player in special situations investing, is making waves across Brazil's corporate landscape, signaling a more assertive approach to its portfolio companies. With approximately R$ 4 billion under management, the firm, led by CEO Renato Azevedo, is strategically positioning itself for significant influence in key sectors, including steel, healthcare, and food processing.

The firm's latest maneuver involves Usiminas, where Latache Capital has acquired a roughly 5% stake in ordinary shares. Ahead of a crucial board election assembly, Latache has nominated two candidates, including its legal director, and is advocating for cumulative voting to maximize its representation. This move underscores Latache's strategy of active engagement rather than passive investment, aiming to drive strategic changes within the companies it backs.

Latache Capital's involvement in Usiminas follows a pattern of targeted investments in companies facing complex corporate dynamics. While Azevedo remains tight-lipped on the specific thesis for Usiminas, he emphasized that the firm's approach is not fundamentally driven but rather opportunistic, leaving the door open for potential litigation if necessary. This stance reflects the firm's reputation for navigating and often initiating corporate disputes, a niche it believes is underdeveloped in the Brazilian market.

In the healthcare sector, Latache Capital maintains a substantial 14.6% holding in Oncoclínicas. The firm's primary objective here is tied to an upcoming tender offer (OPA) related to the transfer of shares from Goldman Sachs to Centaurus. Despite recent board changes and potential activist pressures from entities like Mak Capital, Azevedo reiterated that Latache's core interest remains the resolution of the OPA, not control of the company's day-to-day operations. This focus highlights a calculated investment strategy centered on specific financial claims.

Furthermore, Latache Capital continues its pursuit in the food sector, actively engaged in arbitration proceedings at B3 concerning the share exchange ratio established during the merger of BRF and Marfrig. This ongoing dispute, initiated last year, demonstrates Latache's persistence in seeking favorable terms for its investors, even in protracted legal battles. The firm's track record includes past involvements with companies such as BodyTech, 2W, and Rio Alto Energia, showcasing a consistent appetite for complex, high-stakes situations.

Renato Azevedo's candid remarks suggest a deliberate strategy to leverage corporate governance and legal frameworks to unlock value. The firm's proactive stance in companies like Usiminas and its persistent engagement in disputes involving BRF-Marfrig and Oncoclínicas position Latache Capital as a formidable force in Brazilian special situations. The market is watching closely as Latache continues to shape its investment narrative through active participation and a clear willingness to engage in contentious corporate actions.