Cisneros Group of Companies Announces Significant Investment in Peru's Leading Brewer Backus & Johnston.Business Editors CARACAS, Venezuela & LIMA Lima, city, Peru Lima (lē`mə, Span. lē`mä), city (1990 metropolitan area est. pop. 6,400,000), W Peru, capital and largest city of Peru. Its port is Callao. , Peru--(BUSINESS WIRE)--July 22, 2002 Cisneros-Owned Company Purchases Irrevocable Options for 16% of Class A Common Voting Shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. for an Approximate Amount of US$200 Million Dollars Cisneros Group The Cisneros Group of Companies is one of the largest, privately held media, entertainment, telecommunications and consumer products organizations in the world. The Group owns or holds interests in companies ranging from broadcast television, networks and pay television businesses of Companies Rounds Out Core Investor Group, Joining the Bentin Family to Position Backus For Continued Growth Cisneros Group of Companies today announced that it has made a significant investment in Backus & Johnston, the leading beer company in Peru. Cisneros Group of Companies purchased irrevocable options for 16% of class A common voting shares for an approximate amount of US$200 million dollars. The Cisneros Group of Companies rounds out Backus' core investor group and will work with the Bentin family, who has managed Backus for 48 years, to position the business for continued growth, as beer consumption continues to rise in the Peruvian market. Peru's macro economic stability, the beer market's growth and regional expansion potential and the outstanding management of Backus & Johnston were the key investment drivers. Ricardo Cisneros, Vice Chairman of the Cisneros Group of Companies, commented: "For some time now, the Cisneros Group of Companies has believed that Backus & Johnston represents an attractive strategic investment opportunity for our beer operations, Cerveceria Regional. As part of our pan-regional development strategy, we have identified Peru as a key market, with great promise for economic prosperity. Backus has a strong and vibrant business with tremendous potential for continued growth. We at the Cisneros Group have a great deal of respect and admiration for the Bentin family and believe that they have done an extraordinary job of building value at Backus. We see this move as a first step into a key market in the brewing industry in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , and as a significant step forward in our own growth strategy for Regional. We share the continuing interest of the Bentin family to preserve and enhance the value of Backus & Johnston for all shareholders and, in particular, for minority shareholders. In line with this interest, we are considering ways and means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. for minority shareholders to participate in the transaction within the legal and regulatory framework of Peru and up to the limit of 24.8%." Mr. Cisneros continued, "The Cisneros Group of Companies' interest to participate as an investor in Backus was immediately welcomed by local shareholders. The Cisneros Group of Companies' role is to give support to the management of Backus & Johnston. With its long history of successful partnerships with companies including Coca Cola Noun 1. Coca Cola - Coca Cola is a trademarked cola Coke cola, dope - carbonated drink flavored with extract from kola nuts (`dope' is a southernism in the United States) , Hughes and America Online See AOL. , Inc., and its extensive pan-regional reach, the Cisneros Group of Companies is ready to extend help to the Backus management team to maximize opportunities going forward." Regional is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Cisneros Group of Companies and a leading Venezuelan brewer. The Company has a market share of 25.8% in Venezuela - the market with the largest beer consumption per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. in Latin America. This represents impressive growth from 1993 when its market share was 4.9%. Sales of Regional surged over 410% from 77 million liters in 1993 to 393 million liters in 2001. The sales target for 2002 is 495 million liters. Regional brands include: Regional and Regional Light. Elias Bentin, President of Backus, said: "We are extremely happy about the Cisneros Group of Companies' interest to become a key investor, and that Backus will have their full support. The Cisneros Group of Companies will be a tremendous asset for us as we work to maximize the opportunities available, as beer consumption continues to rise in Peru. Their investment in Backus is a strong endorsement of our business, as well as the country of Peru. Within the region, Backus has the unique advantage of marquee investors with vast experience and expertise in the brewing business in Latin America. This differentiator will help position our Company for continued success within the rapidly consolidating beer industry." Backus is the largest brewer in Peru and the sixth largest brewer in Latin America, with 2001 sales of US$ 507 million. The Cisneros Group of Companies' investment in Backus & Johnston represents a first step for Regional into an attractive business, and a market that the Company has great confidence in and has identified as being key to international growth. The Cisneros Group of Companies has been implementing a successful pan-regional strategy for years developing and cultivating key partnerships including DIRECTV Latin America, AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. Latin America, and Panamco. The Company believes that the beer industry can no longer be viewed as a national enterprise but as a pan-regional corporation. About The Cisneros Group of Companies The Cisneros Group of Companies is one of the largest privately held media, entertainment, telecommunications and consumer products organizations in the world. The Company's assets include: AOL Latin America (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AOLA AOLA America Online Latin America ); DIRECTV Latin America; Univision Communications, Inc. (NYSE NYSE See: New York Stock Exchange : UVN UVN Ustredni Vojenska Nemocnice (Prague) ); Venevision, the leading television network in Venezuela; Eccelera, the Group's technology investing arm; and Venevision International, one of the largest television distribution companies in Ibero-America. The Cisneros Group also owns, operates and has interests in other consumer product-based businesses in Latin America such as supermarket chains, fast food chains, video franchises and beverage companies. These companies include: Pueblo Xtra International, Regional Brewing Company, Panamco and Blockbuster. |
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