NOTICE TO THE MARKET
São Paulo, October 31, 2016.
To
BM&FBOVESPA S.A. Bolsa de Valores, Mercadorias e Futuros
Department of Company Monitoring
At. Ana Lúcia Costa Pereira
With copy to:
Securities and Exchange Commission of Brazil – “CVM”
Mr. Fernando Soares Vieira – Companies Relations Superintendent
Mr. Francisco José Bastos Santos – Market and Agents Relations Superintendent
Ref.: Official Letter 3186/2016-SAE/GAE-1 (“Official Letter”)
Dear Sirs,
Companhia Brasileira de Distribuição, a publicly traded company with corporate seat in the City of São Paulo, State of São Paulo, at Avenida Brigadeiro Luis Antônio, 3142, enrolled with the National Taxpayers Registry of the Ministry of Treasury under No. 47.508.411/0001-56 (“CBD” or the “Company”) in compliance with the requests made in the Official Letter, as reproduced below , hereby clarifies as follows:
October 28, 2016
3186/2016-SAE/GAE-1
Companhia Brasileira de Distribuição
Ms. Daniela Sabbag
Investors Relations Officer
Ref.: Capital increase by means of the stock option plan
Dear Ms.,
In light of the resolutions taken in the BOD meeting held on 10/27/2016, we request that you inform, until 10/31/2016, whether the shares issued due to the capital increase by means of the stock option plan will have full rights and will participate in equal conditions in all benefits, including to dividends and any interests on capital that may be declared by the Company.
For the better understanding of the market, in the file which shall be sent the content of the query above must be transcript before the answer by this company.
Thus, we require that you send the document through the IPE module, selecting the category: Notice to the Market, and the Type: Clarification on queries from CVM / BM&FBOVESPA, which will result in its simultaneous transmission to BM&FBOVESPA and to CVM.
We make an alert that this query is subject to the Cooperation Convention, entered into by CVM and BMF&BOVESPA on 12/13/2011, and that fail to comply shall subject this company to possible imposition of punitive fine by CVM’s Companies Monitoring Superintendence (SEP), pursuant to CVM Rule No. 452/2007.
Courteously,
Ana Lucia da Costa Pereira
Companies Monitoring Manager – 1
BM&FBOVESPA S.A. – Stock Exchange, Commodities and Futures
Phone: (11) 2565-7177
c.c.: CVM – Securities Exchange Commission
Mr. Fernando Soares Vieira – Companies Relations Superintendent
Mr. Francisco José Bastos Santos – Market and Agents Relations Superintendent
The Company clarifies that the shares issued due to the capital increase approved by its Board of Directors in the meeting held on October 27, 2016, shall have full rights and will partake in equal conditions in all benefits, including dividends and any interests on capital that may be declared by the Company. Such shares have the same characteristics and conditions and enjoy the same rights and advantages of other preferred shares issued by the Company, as informed in item 5.3.2 of the minutes of the mentioned meeting, which was released on that same date.
Thus, believing to have clarified the queries made in the Official Letter, the Company shall remain available to provide any additional clarification that may be needed.
COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO
Daniela Sabbag
Investors Relations Officer
