AmBev to Streamline Share Structure

Compania de Bebidas das Americas (AmBev) plans to convert all of its preferred and voting shares into a single class of voting shares, it says. The simplification would result in a new holding company, AmBev SA. The move is designed to simplify the shareholder structure, improve corporate governance, increase the liquidity of shares and increase the flexibility of the company to manage its capital structure. In the proposed transaction, holders will get five new AmBev SA shares for each preferred share or voting share. Holders of ADRs will get five AmBev SA ADRs for each ADR. The deal also includes an increase in the mandatory dividend payout to 40% of profit, up from 35% previously. The matter remains to be voted on by shareholders. AmBev does not indicate timing.