Mexican brewer Grupo Modelo SAB said its shareholders agreed to forgo an annual dividend payment because of the “current world economic context.”
Stockholders voted unanimously not to receive a dividend during an annual meeting today, Grupo Modelo, Mexico’s largest beer brewer, said in a statement to the Mexican stock exchange. The company will reinvest earnings in investment projects, it said.
The decision to scrap the dividend means that Anheuser- Busch InBev NV, which acquired Anheuser-Busch Cos.’ almost 50 percent stake in Modelo when it bought the brewer last year, won’t get an annual payment.
Modelo filed a notice of arbitration in October trying to block Anheuser-Busch from selling its non-controlling interest under the merger agreement with Belgium-based InBev. Modelo Chief Executive Officer Carlos Fernandez has said his company would like to buy back the stake.
Modelo has paid a dividend since at least 1999, according to Bloomberg data. The company paid 2.09 pesos (20 U.S. cents) per share in April 2008, for a total payout of about $646.3 million.
Modelo fell 2.64 pesos, or 6 percent, to 41.05 pesos at 4 p.m. New York time in Mexican stock exchange trading, the biggest percentage drop since Nov. 12. The shares have dropped 15 percent in the past 12 months.