MEXICO: Bachoco to change stock composition
Industrias Bachoco SA de CV, Mexico's leading producer and processor, today (21 March) announced that it intends to change the composition of its stock.
Currently, the company's shares are listed on the Mexican Stock (BMV) while its American Depositary Shares (ADS) are listed with the New York Stock Exchange (NYSE). On the BMV, Bachoco stock trades as units consisting of one Series B and one Series L share. On the NYSE, ADSs represent six units consisting of six Series B and six Series L shares. Series B shares have full voting rights and Series L stock has limited voting rights.
With the aim of benefiting shareholders by promoting equal voting rights, the company has proposed to convert Series L shares to Series B shares on a one-for-one basis. It intends to separate the units trading on the BMV into their component parts, resulting in the trade of a single class - Series B - on the BMV. The ADSs will still consist of 12 shares, but they will all 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."
If Bachoco shareholders approve the proposal, the company will start the process with the Mexican and US securities authorities. It is expected that the conversion will be completed during the second-half of this year.
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