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)--Jan. 23, 2003 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) and (BOVESPA See Bolsa de Valores de Sao Paulo. :AMBV4) (BOVESPA:AMBV3), the world's fifth largest brewer and Brazil's leading beverage company, announced today that its Board of Directors launched a new R$200 million buyback program of common and preferred shrares of AmBev. The program is valid for a period of 90 days in accordance with CVM (Brazilian Securities and Exchange Commission) Instruction 10/80. Should the total amount used to acquire shares be below the established limit over the next 90 days, the Board of Directors may renew the buyback program for successive 90-day periods. Over the next 90 days, AmBev may repurchase up to 260,998,879 common shares and 1,877,176,843 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 7.21% and 8.71% of the respective free float Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. in each class (i.e. 3,621,294,787 common shares and 21,550,876,509 preferred shares). Issuance of Put Options The issuance of put options for each class of shares of AmBev was also approved in accordance with CVM Instructions 290/98 and 291/98, respecting the limits set for the overall program. In compliance with Article 2 of CVM Instruction 290/98, the volume of put options issued multiplied by their respective strike prices may not exceed 30% of the revenue and capital reserve balance sheet accounts. Also, this amount plus the aggregate amount of cash share repurchases is limited to R$200 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, modified by CVM Instruction 268/97. For additional information, please contact the Investor Relations Investor relations The process by which the corporation communicates with its investors. Department:
Dana Voelzke, (5511) 3741-7560
acdanav@ambev.com.br
or
Alexandre Saddy, (5511) 3741-7553
acars@ambev.com.br
www.ambev-ir.com
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