October 30, 2013 / 12:28 AM / 5 years ago

Brazil suspends trade in shares of university operator GAEC

SAO PAULO (Reuters) - Brazil’s securities regulator CVM on Tuesday suspended trading in shares of education company GAEC Educação SA (ANIM3.SA) in the second day of trading since its $213 million initial public offering.

The CVM said it handed down the suspension due to statements attributed to the company’s chairman, Ozires Silva, which were published in the local newspaper Valor Economico on Monday.

GAEC had not yet submitted a closing statement for its IPO, making statements to the media off limits by law.

CVM said it could reverse the suspension if the company corrects the perceived irregularities or it could cancel the IPO if GEAC does not take such steps.

GAEC shares closed down 1.5 percent at 18.93 reais on Tuesday, in their second day of trading.

The firm operates universities under the Anima Educação brand in Brazil, where an $11 billion-a-year education industry has grown at a double-digit rate in recent years.

Reporting by Reese Ewing; Editing by Joseph Radford

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