GUANAJUATO, Mexico, March 20 /PRNewswire-FirstCall/ -- Industrias Bachoco S.A. de C.V. (BMV: Bachoco UBL) ("Bachoco" or "the Company"), Mexico's leading producer and processor of poultry products, today announced a plan to change the composition of its stock.
At present,
-- Industrias Bachoco's shares are listed on the Mexican Stock Exchange
and its American Depositary Shares (ADS) are listed on the New York
Stock Exchange.
-- Bachoco's stock trades on the Mexican Stock Exchange as units, each
consisting of one Series B and one Series L share.
-- Bachoco's ADSs, which trade on the NYSE, represent six units, each
consisting of six Series B and six Series L shares.
-- The Series B Shares have full rights while Series L have limited voting
rights.
In order to improve the structure of Bachoco's stock and to benefit shareholders through equal voting rights, the Company proposed the following conversion process, consisting of:
-- Converting its Series L shares into Series B shares on a one for one basis. -- Separating the UBL units currently trading on the Mexican Stock Market into their component shares, which will result in a single class, the Series B shares, trading on the Mexican Stock Market. -- With respect to the ADSs, they will still consist of twelve shares, but all of the underlying shares will be Series B shares.
Cristobal Mondragon, CEO of Bachoco, stated, "We believe this change not only simplifies the structure of our stock, but also benefits our shareholders by extending equal voting rights."
The Company will start this process with the Mexican and U.S. securities authorities following approval at the shareholder meeting that will be held on April 26. The conversion would be expected to be completed during the second half of this year.
Company Description
Industrias Bachoco S.A. de C.V. is Mexico's leading producer and processor of poultry products with over 700 production and distribution facilities throughout the country. The Company is also Mexico's second largest producer of table eggs. It sells swine to meat packers for the production of pork products and is an important player in the balanced feed industry in Mexico. The Company posted net sales of US$1.36 billion for 2005, divided among the Company's four main product lines as follows: 80.1% chicken and chicken- related products, 8.7% table eggs, 7.2% balanced feed and 4.0% swine and other lines.
Industrias Bachoco's shares are listed on the Mexican Stock Exchange and its American Depositary Shares (ADS) are listed on the New York Stock Exchange. One ADS represents six units, each consisting of one Series B and one Series L Share. For more information, please visit Bachoco's website at http://www.bachoco.com.mx/ .
This press release contains certain forward-looking statements that are subject to a number of uncertainties, assumptions and risk factors that may influence its accuracy. Actual results may differ. Factors that could cause these projections to differ include, but are not limited to: supply and demand, industry competition, environmental risks, economic and financial market conditions in Mexico and operating cost estimates. For more information regarding Bachoco and its outlook, please contact the Company's Investor Relations Department.
