Grupo Modelo Shareholders Vote to Forgo Dividend
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.