Dear investors, PPLA Participations, Ltd. ("PPLA") would like to clarify and reiterate to its investors the following:
(i) Although PPLA and Banco BTG Pactual S.A. have equivalent control structures—PPLA being a company incorporated in Bermuda and Banco BTG Pactual S.A. a financial institution headquartered in Brazil—they are distinct companies with segregated operations, as widely disclosed to the market.
(ii)The "PPLA11" units consist solely of securities issued by PPLA and do not represent an investment in securities issued by Banco BTG Pactual S.A.
(iii)Prospective investors in PPLA are encouraged to perform appropriate due diligence and to consult their advisors and other professionals they deem appropriate to assess whether an investment in PPLA suits their investor profile, as well as the risks inherent in PPLA's business and in an investment in "PPLA11" units.
(iv)An investment in "PPLA11" units involves risk, as it is a variable-income investment; investors in PPLA may therefore be exposed to loss of capital and other risks, including those related to "PPLA11" units, PPLA, the sector in which it operates, its shareholders, and the macroeconomic environment, all of which should be carefully considered before any investment decision. An investment in "PPLA11" units is therefore not suitable for investors who are averse to risks associated with volatility in the capital markets.
We reiterate that assets held by investment vehicles indirectly owned by PPLA are subject to an ongoing restructuring process, in line with (i) information timely disclosed to the market by PPLA under applicable regulation, (ii) the material fact of PPLA and Banco BTG Pactual S.A. dated 14 February 2017, including supporting materials made available by PPLA on its investor relations website under "Other information", "Migration of Units"; and (iii) its financial statements and other documents filed with the CVM.
Finally, we again emphasize that direct disposal of BDRs backed by shares issued by PPLA is not permitted under article 8.2 of PPLA's bylaws. Trading must therefore take place only through PPLA's "PPLA11" units.
For further information on assets, risks and other matters concerning PPLA, please refer to its financial statements and its reference form.