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Shareholders Meeting Approves Termination of American Depositary
Receipts Program
- By Vote of 99.85% of the Company's Shares -
MEXICO CITY, June 1 /PRNewswire-FirstCall/ -- TV Azteca, S.A. de C.V. (BMV:
TVAZTCA; NYSE: TZA; Latibex: XTZA), one of the two largest producers of
Spanish-language television programming in the world, announced that the
Extraordinary Shareholders' Meeting held today approved, by the vote of 99.85%
of the Company's shares represented by minority shareholders and Ricardo B.
Salinas, to terminate the American Depositary Receipts (ADRs) program that the
Company has in the United States, listed on the New York Stock Exchange (NYSE).
The Shareholders' Meeting made the decision after an analysis and discussion of
the costs and benefits of continuing with the ADR program in the capital
markets of the United States.
The shareholders considered that the Mexican capital and debt markets have
become a robust source of financing in pesos, with considerable levels of
liquidity for investors. The shareholders also anticipated that future
investment plans of the Company will be financed through the generation of its
own cash flow and if necessary through local debt markets.
At the same time, it was noted that interested parties that are legally able,
may continue to invest in the Company through shares listed on the Mexican
Stock Exchange (Bolsa Mexicana de Valores (BMV)). The company considers that
the Mexican Stock Exchange has an index that reflects the macroeconomic
stability and economic growth of the country, and has a legal framework with
the purpose of protecting all shareholders.
In order to implement the Shareholders' Meeting resolution, the Company will
immediately take the following actions: i) notify the NYSE and The Bank of New
York (BONY) of the termination of the ADR program, ii) amend the Deposit
Agreement to reduce to 60 days the period for exchanging ADRs for CPOs, of
which BONY should notify the ADR holders, and iii) amend the Company's Form F-6
(registration of ADRs) to reduce the number of ADRs to zero.
The trading of the ADRs in the United States shall continue for the next 30
days from the date on which BONY notifies the termination of the Deposit
Agreement to ADR holders. During such period, ADR holders may exchange ADRs
for CPOs that are listed on the BMV.
After the 30-day period, the NYSE will suspend trading of the ADRs in the
United States. It is anticipated that the NYSE will request the delisting of
the ADRs with the United States Securities and Exchange Commission (SEC), and
the ADR holders will have 60 days to exchange their ADRs for CPOs that are
traded on the BMV.
ADR holders that wish to exchange their ADRs for CPOs should request that their
brokers or dealers in the United States perform all acts necessary so that the
CPOs received pursuant to the exchange are held by a securities intermediary in
Mexico.
Upon the expiration of the 60-day period, BONY will be entitled to sell the
remaining CPOs, corresponding to ADRs that were not surrendered, in the BMV and
distribute the proceeds of the sale to holders.
In the event that there are less than 300 United States resident shareholders
in the future, the Company could request the cancellation of its securities
registry in the United States. In this case, TV Azteca would cease to have
reporting obligations with SEC and realize a substantial cost savings related
to this registry. The Company noted that the registration with the SEC and the
listing with the NYSE are separate and independent events.
Company Profile
TV Azteca is one of the two largest producers of Spanish language television
programming in the world, operating two national television networks in Mexico,
Azteca 13 and Azteca 7, through more than 300 owned and operated stations
across the country. TV Azteca affiliates include Azteca America Network, a new
broadcast television network focused on the rapidly growing US Hispanic market,
and Todito.com, an Internet portal for North American Spanish speakers.
Except for historical information, the matters discussed in this press release
are forward-looking statements and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected. Risks that may affect TV Azteca are identified in its Form 20-F and
other filings with the US Securities and Exchange Commission.
DATASOURCE: TV Azteca, S.A. de C.V.
CONTACT: Investor Relations: Bruno Rangel, +52-55-1720-9167,
; or Rolando Villarreal, +52-55-1720-0041,
; Press Relations: Daniel McCosh,
+52-55-1720-0059,
Web site: http://www.tvazteca.com.mx/