STOCK TITAN

AXIA Energia (NYSE: AXIA) sets R$2B Class C redemption and shifts ADSs off NYSE

(Neutral)
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

AXIA Energia S.A. approved a Partial Mandatory Redemption of 37,237,014 Class “C” preferred shares (PNC), representing 6.14% of that class and totaling R$2,000,000,000, at a redemption price of R$53.71 per share. The redemption for PNC holders will occur on August 24, 2026, applied automatically on a pro rata basis, with payment in Brazilian reais through the company’s bookkeeping agent. PNC holders may instead elect to convert any or all PNC shares subject to redemption into common shares at a 1.1:1 ratio; ADS holders cannot use this conversion option.

For ADSs, 6.14% of outstanding ADSs will also be mandatorily redeemed for cash in U.S. dollars after the Effective Date, based on funds received in Brazil, net of taxes and depositary fees of up to US$0.05 per ADS cancelled and up to US$0.05 per ADS held for the cash distribution. ADSs will cease trading on the NYSE after the close of business on August 7, 2026 and begin trading on the OTC Markets Group’s Pink Limited Market the same day, with trading continuing for ADSs not redeemed.

Positive

  • None.

Negative

  • AXIA Energia’s ADSs will cease trading on the NYSE on August 7, 2026 and move to the OTC Markets Group’s Pink Limited Market, reducing their presence on a major U.S. exchange.

Filing Explained

The board-approved redemption gives eligible PNC holders a conversion alternative that, if used, could dilute existing common shareholders; the filing does not establish that conversion or quantify any resulting dilution.

PNC Shares Redeemed 37,237,014 shares Class C preferred shares subject to Partial Mandatory Redemption, approximately 6.14% of that class
Redemption Percentage 6.14% Portion of outstanding PNC Shares and ADSs that will be mandatorily redeemed
Total Redemption Amount R$2,000,000,000 Aggregate value of PNC Shares included in the Partial Mandatory Redemption
Redemption Price R$53.71 per share Cash consideration per PNC Share on the August 24, 2026 Partial Mandatory Redemption
Depositary Fees up to US$0.05 per ADS cancelled; up to US$0.05 per ADS held Maximum fees deducted in connection with the ADS Redemption Payment
Effective Date August 24, 2026 Date when the Partial Mandatory Redemption of PNC Shares will occur
ADS NYSE Trading End Date August 7, 2026 ADSs cease trading on the NYSE after close of business and move to OTC Pink
Partial Mandatory Redemption financial
"the Board approved the partial mandatory redemption of 37,237,014 PNC Shares"
American Depositary Shares financial
"and the corresponding American Depositary Shares ("ADSs"), each representing one PNC Share"
American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.
book-entry form financial
"PNC Shares held in book-entry form through a broker, bank, or other nominee"
A book-entry form is an electronic record showing ownership of securities instead of a paper certificate; think of it like a bank account ledger that notes who owns shares. It matters to investors because it makes buying, selling and transferring securities faster, safer and cheaper by reducing paperwork, loss or forgery risk, and enabling easier settlement through brokers or a central depository.
Depository Trust Company financial
"For ADSs held in The Depository Trust Company ("DTC"): The Partial Mandatory Redemption"
A central securities depository that holds stocks, bonds and other securities in electronic form and handles the transfer and finalizing of trades between brokerages. For investors it acts like a secure electronic vault and central bookkeeping hub that speeds transactions, reduces the chance of lost or duplicated certificates, and determines whether holdings are eligible for trading, dividends and other corporate actions through your broker.
Pink Limited Market financial
"will begin trading on the OTC Market Group’s Pink Limited Market on August 7, 2026"
A pink limited market is a segment of the stock market where shares of smaller or newer companies are traded, often with fewer regulations and less oversight than larger markets. It matters to investors because these markets can offer opportunities for growth but also carry higher risks due to less transparency and stability, similar to a marketplace where products are less tested and might be more uncertain.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What is AXIA (AXIA) doing with its Class C preferred PNC shares?

AXIA Energia will mandatorily redeem 37,237,014 Class C preferred (PNC) shares, equal to 6.14% of that class, for a total of R$2,000,000,000. Each redeemed share will receive R$53.71, with the redemption occurring on August 24, 2026.

How does the Partial Mandatory Redemption affect AXIA (AXIA) ADS holders?

Holders of AXIA ADSs will have 6.14% of their ADSs mandatorily redeemed for cash in U.S. dollars after August 24, 2026. Payments follow receipt of funds in Brazil and are net of taxes and depositary fees of up to US$0.05 per ADS cancelled and per ADS held.

Can AXIA (AXIA) PNC shareholders convert into common shares instead of redemption?

Yes. Holders of PNC shares may elect to convert any or all PNC shares subject to redemption into common shares at a 1.1:1 ratio. This Partial Elective Conversion applies only to PNC shareholders; holders of ADSs are not entitled to participate.

When will AXIA Energia’s ADSs stop trading on the NYSE?

AXIA Energia’s ADSs will cease trading on the New York Stock Exchange after the close of business on August 7, 2026. On the same date, the ADSs will begin trading on the OTC Markets Group’s Pink Limited Market, with non-redeemed ADSs continuing to trade there.

How is the AXIA (AXIA) redemption price determined and paid?

Each PNC share will be redeemed at R$53.71, calculated under the company’s bylaws using the prevailing common share price. Payment is in Brazilian reais via Itaú Corretora de Valores S.A. to the holder’s account or through their broker, bank, or nominee.

What risks does AXIA mention regarding the Partial Mandatory Redemption?

AXIA highlights risks including potential dilution of existing common shareholders if PNC shares are converted, cash outflows from the company, and tax consequences for PNC and ADS holders in Brazil and the United States, in addition to other risks in its Form 20-F.

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 6-K

 

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

For the month of August, 2026

 

Commission File Number 1-34129

 


 

AXIA Energia S.A.

(Exact name of registrant as specified in its charter)




AXIA Energia S.A.

(Translation of Registrant's name into English)




Avenida Graça Aranha, 26

Centro, Zip Code 20030-900

Rio de Janeiro, RJ, Brazil

(Address of principal executive office)



Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____

 
 

MANDATORY REDEMPTION OF PREFERRED CLASS “C” SHARES AND CORRESPONDING AMERICAN DEPOSITARY SHARES

AXIA Energia S.A. (“AXIA Energia” or the “Company”) hereby reports that, on August 6, 2026, the Board of Directors of the Company (the “Board”) approved the partial mandatory redemption (the “Partial Mandatory Redemption”) of 37,237,014 of the outstanding Class “C” preferred shares (the “PNC Shares”) of the Company, equivalent to approximately 6.14% of the outstanding PNC Shares and R$2,000,000,000, and the corresponding American Depositary Shares (“ADSs”), each representing one (1) PNC Share (CUSIP No. 15236F100). In connection with a Partial Mandatory Redemption, holders of PNC Shares may instead opt for the conversion of any or all of the PNC Shares subject to the Partial Mandatory Redemption into the Company’s common shares, at a ratio of 1.1:1 (the “Partial Elective Conversion”). Holders of ADSs will not be entitled to participate in the Partial Elective Conversion.

The ADSs were issued by Citibank, N.A., as depositary (the “Depositary”), with Banco Bradesco S.A. acting as custodian (the “Custodian”), pursuant to the terms and conditions set forth in that certain Deposit Agreement, dated as of December 26, 2025, by and among the Company, the Depositary and all Holders and Beneficial Owners of ADSs issued thereunder (the “Preferred C Deposit Agreement”), and applicable law.

The Partial Mandatory Redemption will be applied on a pro rata basis among all holders of PNC Shares. Fractional entitlements resulting from the pro rata allocation will be disregarded (rounded down), and no payment will be made in respect of such fractional amounts. The number of PNC Shares to be redeemed from each holder shall be calculated as follows: (number of PNC Shares held by such holder) × 6.14%, rounded down to drop any fraction.

Redemption Price and Effective Date

The Partial Mandatory Redemption for holders of PNC Shares will occur on August 24, 2026 (the “Effective Date”). The ADS Redemption Payment shall occur after the Effective Date, as discussed further below. The redemption price payable by the Company per PNC Share shall be R$53.71 (the “Redemption Price”), determined in accordance with Article 11, paragraph 10, of the Company’s bylaws at the prevailing common share price.

Payment of the Redemption Price to holders of PNC Shares will be made on or promptly following the Effective Date. After the Effective Date, holders will retain their remaining PNC Shares that are not subject to the Partial Mandatory Redemption.

Procedure for Holders of PNC Shares

The Partial Mandatory Redemption will be applied automatically on a pro rata basis (disregarding fractions) to all outstanding PNC Shares as of the Effective Date. Holders of PNC Shares are not required to take any affirmative action to receive the Redemption Price. Payment of the Redemption Price will be made in Brazilian Reais (R$) through the Company's bookkeeping agent, Itaú Corretora de Valores S.A., at Av. Brigadeiro Faria Lima, 3500, 3rd Floor, Itaim Bibi, São Paulo, SP, Zip Code 04538-132, Brazil, to the account on file with the bookkeeping agent or the applicable nominee. Holders of PNC Shares held in book-entry form through a broker, bank, or other nominee should contact their nominee for further information regarding the distribution of the Redemption Price. Following the Partial Mandatory Redemption, holders will retain the remaining PNC Shares not subject to redemption.

Procedure for Holders of ADSs

As a result of the Partial Mandatory Redemption, 6.14% of the outstanding ADSs will be mandatorily redeemed for cash (the “ADS Redemption Payment”). Holders of ADSs are not required to take any affirmative action to receive the ADS Redemption Payment. The Partial Mandatory Redemption will be applied automatically on a pro rata basis to all outstanding ADSs as of the ADS record date to be established by the Depositary (the “ADS Record Date”). Fractional entitlements resulting from the pro rata

 
 

allocation will be disregarded (rounded down), and no payment will be made in respect of such fractional amounts.

The ADS Redemption Payment shall occur after the Effective Date and be paid in United States dollars (US$), converted from Brazilian Reais (R$) at the applicable exchange rate after the Depositary receives the funds in Brazil, net of any applicable depositary fees (including up to US$0.05 per ADS cancelled and up to US$0.05 per ADS held for the cash distribution), taxes, and expenses. The Depositary expects to distribute the ADS Redemption Payment promptly after receipt of funds in Brazil. The Depositary will issue a separate notice to ADS Holders providing additional details regarding the timing and applicable conversion rate for the ADS Redemption Payment.

For ADSs held in The Depository Trust Company (“DTC”): The Partial Mandatory Redemption will be applied automatically by DTC on a pro rata basis to all outstanding ADSs held in DTC as of the ADS Record Date. Fractional entitlements resulting from the pro rata allocation will be disregarded (rounded down), and no payment will be made in respect of such fractional amounts. The ADS Redemption Payment will be credited by the Depositary to DTC for distribution to DTC participants and their client accounts. The portion of a holder's ADSs subject to redemption will be cancelled, and the holder will retain the remaining ADSs not subject to the Partial Mandatory Redemption. DTC participants and their clients are not required to take any affirmative action.

For ADSs held in uncertificated form (other than in DTC): The Partial Mandatory Redemption will be applied automatically by the Depositary on a pro rata basis to all outstanding ADSs as of the ADS Record Date. Fractional entitlements resulting from the pro rata allocation will be disregarded (rounded down), and no payment will be made in respect of such fractional amounts. The Depositary will mail to Holders of ADSs as of the ADS Record Date a check for the applicable ADS Redemption Payment and an account statement specifying the ADS Redemption Payment amount, as well the number of ADSs held after giving effect to the Partial Mandatory Redemption.

The ADS’s will cease trading on the New York Stock Exchange after the close of business on August 7, 2026, and will begin trading on the OTC Market Group’s Pink Limited Market on August 7, 2026. Trading in the ADSs will continue for ADSs not subject to the Partial Mandatory Redemption.

For questions regarding the Partial Mandatory Redemption, holders of ADSs may contact Citibank, N.A. - ADS Holder Services at 1-877-CITI-ADR.

 
 

SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 7, 2026

 

AXIA ENERGIA S.A.
     
By:

/S/ Eduardo Haiama


 
 

Eduardo Haiama

Vice-President of Finance and Investor Relations

 

 

 

 

FORWARD-LOOKING STATEMENTS

 

This document may contain estimates and projections that are not statements of past events but reflect our management’s beliefs and expectations and may constitute forward-looking statements under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words “believes”, “may”, “can”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar expressions are intended to identify estimates that necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include, but are not limited to: risks related to the Partial Mandatory Redemption, including the potential dilution of existing common shareholders in connection with any conversion of PNC shares into common shares, cash outflows by the Company, and tax consequences for PNC shareholders and ADS holders, including in Brazil and the United States; and other risks described in our annual report and other documents filed with the CVM and SEC. Forward-looking statements speak only as of the date they are made, and readers are cautioned not to put undue reliance on forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s Annual Report on Form 20-F filed with the SEC. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov and on the Company’s website at https://ri.axia.com.br/en/. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.