Flamengo Participações entered into an agreement to acquire 97.67% stake in Nadir Figueiredo Indústria e Comércio S.A. (BOVESPA:NAFG4) for approximately BRL 740 million on July 12, 2019. Flamengo Participações SA will pay BRL 63.05 for each ordinary and preferred share which is subject to variation of the net indebtedness and working capital of Nadir Figueiredo Indústria e Comércio S.A. An amount equivalent to BRL 100 million will be paid after the seventh anniversary of closing of the transaction and may be compensated against any indemnities due by the sellers in the year of the agreement arising from the materialization of losses and contingencies related to events prior to the date of closing of the transaction. Flamengo Participações SA will submit a request for registration of a public tender offer for the remaining shares. The transaction has been approved by the shareholders of Nadir Figueiredo Indústria e Comércio S.A.