AmBev Announces New Share Buyback Program.Business Editors SAO Sa´o n. 1. (Zool.) Any marine annelid of the genus Hyalinæcia, especially H. tubicola of Europe, which inhabits a transparent movable tube resembling a quill in color and texture. PAULO, Brazil--(BUSINESS WIRE)--May 25, 2004 Companhia de Bebidas das Americas -- AmBev (NYSE NYSE See: New York Stock Exchange :ABV ABV Above ABV Alcohol By Volume ABV Abuja, Nigeria (airport code) ABV Assault Breacher Vehicle ABV Accredited Business Valuation specialist ABV Auxiliary Building Ventilation ABV Annual Buy Value ABV Air Bleed Valve ) (NYSE:ABVc) (BOVESPA See Bolsa de Valores de Sao Paulo. :AMBV4) (BOVESPA:AMBV3), the world's fifth largest brewer and Brazil's leading beverage company, announced that its Board of Directors approved yesterday a new share buyback program limited to R$500 million. The program is valid for 365 days in accordance with CVM (Brazilian Securities and Exchange Commission) Instruction 10/80. Over the next 365 days, AmBev may repurchase up to 1,838,823,087 preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , representing 8.94% of the preferred shares free float Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. . Through the frequent issuance of new share buyback programs, AmBev keeps its policy of continuously enhancing shareholder value by combining an efficient use of strong cash flow generation with a wise management of its capital structure, as evidenced by its investment grade rating in local currency. After investing in core activities that increase profits to shareholders, the Company also remains committed in returning cash to shareholders through share buybacks and dividends. Acquisition of Call Options and Issuance of Put Options A program to acquire call options and issue put options was also approved, in accordance with CVM Instruction 390/03, respecting the limits set for the overall program. The volume of options, held or issued, multiplied by their respective strike prices plus the aggregate amount of cash share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. is limited to R$500 million. The amount of shares to be kept in treasury may not surpass the equivalent of 10% of the float of each share class, in compliance with article 3 of CVM Instruction 10/80, amended by CVM Instruction 268/97, and with article 3, 1st paragraph, of CVM Instruction 390/03. The Company informs that regarding the Buyback Program issued on March 22, 2004, the Company has sold 50,000,000 put options of the series expiring on 06.21.05 at a strike price of R$ 628.00 Further information on the share buyback, including the brokers authorized to carry on the operation, is presented in the Minutes of the Meeting of the Board of Directors, available in our Investor Relations Investor relations The process by which the corporation communicates with its investors. Web site. The Board of Directors informs that there are no relevant facts that have not been announced, commanding the management to suspend the trading in case there is a relevant fact, including in relation to the ongoing incorporation, until the appropriate disclosure be made. |
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