AmBev Discloses Further Information Regarding the Potential Synergies Derived from the Alliance with Interbrew.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 Paulo is the Portuguese form of the given name Paul:
Companhia de Bebidas das Americas A·mer·i·cas , the See America. - 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, presented yesterday at the BOVESPA further information regarding the synergies derived from the alliance with Interbrew. AmBev provided complementary data describing the expected sources of synergies and the respective amount estimated for each one of them. The information is summarized in the following tables:
Annual Operating Synergies, totaling US$ 1.5 billion on an NPV basis:
Source Estimated Benefit (US$ million per year)
----------------------------- ----------------------------------------
Administrative Expenses 30
----------------------------- ----------------------------------------
Variable Production Costs 56
----------------------------- ----------------------------------------
Fixed Production Costs 8
----------------------------- ----------------------------------------
Distribution Costs 11
----------------------------- ----------------------------------------
Additional Margins from Cross
Licensing Agreements 68
----------------------------- ----------------------------------------
Capital Expenditures 17
----------------------------- ----------------------------------------
Financial Synergies
Source Net Present Value for the
Estimated Benefit
(US$ million)
------------------------------------- --------------------------------
Increase in the allowance for payment
of Interest on Own Capital 429
------------------------------------- --------------------------------
Reduction of AmBev's Cost of Capital 536
------------------------------------- --------------------------------
The company informed that its allowance to pay interest on own capital is currently limited by the relatively low book value of its equity compared to earnings generated. As the merger of Labatt into AmBev's balance sheet should significantly increase its shareholders equity, the company will benefit from a higher allowance to pay interest on own capital, which is tax deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). . For further information, including the full presentation and its transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record , please refer to AmBev's IR Web site www.ambev-ir.com. For additional information, please contact Pedro Ferraz Aidar, Head of Investor Relations Investor relations The process by which the corporation communicates with its investors. (phone: 5511-2122-1415 and e-mail: acpaidar@ambev.com.br) or Fernando Vichi (phone: 5511-2122-1414 and e-mail: acfgv@ambev.com.br) at AmBev Investor Relations. WWW.AMBEV-IR.COM |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion