São Paulo, October 29, 2020, Linx S.A. (“Company”) (B3: LINX3 | NYSE: LINX), in accordance with Article 157, paragraph 4 of Law No. 6.404/76, as amended (“Brazilian Corporate Law”) and CVM Normative Ruling No. 358, of January 3, 2002, comes public to inform its shareholders and the market in general that STNE Participações S.A. (“STNE”) waived, on October 28, 2020, according to the letter attached hereto (“STNE Letter”), the right to receive the penalty of BRL 112,500,000.00 set forth in Section 8.1 (iv) of the Association Agreement executed on August 11, 2020, as amended on September 1 and on October 2, 2020 (“Association Agreement”), in the event that, provided the Extraordinary General Meeting of the Company (“EGM”) is held, any of the matters on its agenda is rejected and such rejection prevents, impairs or encumbers the consummation of the merger of shares issued by Linx into STNE (“STNE Transaction”), notwithstanding that all other penalties provided for in the Association Agreement remain in full force and effect (including STNE’s right to receive the full compensatory penalty in the event of the consummation of a competing transaction, as per the terms of the Association Agreement).

In response to the request made by the Independent Board Members of Linx to STNE regarding the waiver of the one hundred and twelve million and five hundred thousand Reais (BRL 112,500,000.00) penalty set forth in Section 8.1 (iv) of the Association Agreement applicable to the EGM with the purpose of complying with the Official Letter No. 908/2020-SLS (“Official Letter”), issued by the Superintendence of Issuers’ Listing and Supervision and the Superintendence of Issuers’ Regulation, Guidance and Enforcement of B3 S.A. – Brasil, Bolsa, Balcão (“B3”), STNE agreed to waive its right to the penalty, not only regarding the rejection of its listing with the Novo Mercado of B3, but also regarding other matters on the agenda related to the STNE Transaction.

In addition, Linx informs that STNE, in the exercise of its right set forth in Section 1.2.6 of the protocol of merger of Linx’s shares into STNE (“Protocol”), increased by BRL 0.50 per Linx share, the cash portion to be paid in exchange for the redemption of the New Shares STNE, now representing R$ 32.06 per Linx share, remaining unchanged the portion of Class A StoneCo Shares or StoneCo BDR, as applicable, and subject to the adjustments established in the Protocol. Said price increase is subject to the approval of the merger of Linx’s shares into STNE by the EGM on November 17, 2020.

The Board of Directors of the Company, in a meeting held on October 28, 2020 resolved to (a) authorize Linx’s Board of Officers to express its agreement to the STNE Letter; and (b) maintain its favorable manifestation to the STNE Transaction and to the recommendation for its submission to the Company’s shareholders at the EGM called for November 17, 2020.

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