After 26 years, the Argentine executive Matias VidelaCEO of the Chilean supermarket giant Cencosud, presented his resignation from the company this Wednesday, October 18, according to what was reported by the newspaper El País. He does so after almost two weeks of being sanctioned by the Financial Market Commission (CMF), the body that in Chile supervises the securities market and its issuers, for use of privileged information.
Strong pressure from various unions towards the company would have led Videla to make this decision.
In the presentation of his resignation to the company’s board of directors, Videla communicated that he seeks to concentrate on his defense of the charges made by the CMF. Meanwhile, the retail conglomerate released a brief announcement in which it thanked “Mr. Videla’s contribution to the company over the last 26 years.”
In addition, he reported that the role of CEO will be assumed on an interim basis by Heike Paulmann, president of the company and part of the controlling family of the company, which has a presence in several countries in America. For her part, Paulmann, spread the following text of gratitude internally: “A lifetime of dedication and affection given to our beloved Cencosud.” “We wish Matías good luck in the challenges that await him. His mark will always mark the future of this company.”
Why was the CEO of Cencosud fined?
On October 4, Matías Videla was fined about US$590,000 for having used privileged information by purchasing Cencosud shares for a total amount of about US$870,000 in May 2022, in the midst of negotiations to close the purchase of the company Torre y Cía. Supermercados SA, owner of part of the Supermarket supermarket chain in Rio de Janeiro, according to the Spanish newspaper report.
Although the operation did not prosper, the background exposed in the CMF file revealed Videla’s insistence on acquiring the papers and his behavior “outside any investment pattern.” The background of the case is currently being reviewed by the Prosecutor’s Office in Chile, which must determine if the executive committed a crime.
The Argentine Videla spoke out as soon as the CMF sanction became known and expressed his surprise at the regulator’s decision: “I emphatically deny having used privileged information. It seems to me an unfair and unfounded resolution, and I am reviewing the issue with my lawyers to exercise the appropriate resources.. Furthermore, regarding the acquisition of shares, I duly and timely informed the regulator.”
With information from El País.
Source: Larepublica
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