Brazil retailer GPA jumps 18% as board reshuffle bid gathers support

April 2 (Reuters) - Shares in Brazilian retailer GPA PCAR3.SA rise over 18% on Wednesday afternoon in Sao Paulo, after touching highest value in over a year, as a proposal to elect a new board gains support

GPA says in a Tuesday filing that shareholders Casino and Ronaldo Iabrudi back a proposal from fund Saint German to remove the current board of directors and elect new members

The proposal from Saint German, an investment fund controlled by Brazilian investor Nelson Tanure, is set to be voted by shareholders in a meeting, that has yet to be scheduled

Tanure -known for investing in companies facing restructuring processes- has grown its stake in GPA to about 9%, and wants to appoint three board members

JPMorgan analysts say in recent a report that the proposal could drive shares higher as it seems the potential new board not disrupting ongoing activities, while placing a greater focus on reducing costs and debt

GPA's shares jump some 18.2% to about 3.58 reais ($0.6290) each in the afternoon, leading gains among Brazil's benchmark index Bovespa .BVSP, which stands near flat

GPA shares hit earlier in the day their highest level since March 2024, at 3.84 reais each

($1 = 5.6920 reais)