SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of December, 1999
PANAMERICAN BEVERAGES, INC.
(Translation of registrant's name into English)
Blvd. Manuel Avila Camacho, No. 40, 22nd Floor
Col. Lomas de Chapultepec
Del. Miguel Hidalgo
C.P. 11000 Mexico, D.F., Mexico
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F x Form 40-F
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(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes No x
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Table of Contents
Page
Press Release dated December 10, 1999: Panamco to Record
One-Time Charge in Fourth Quarter of 1999; Board Authorizes
$100 Million Share Repurchase................................... 3
Signatures......................................................... 5
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[LOGO]
FOR IMMEDIATE RELEASE
Contact: Christian Philco David Reno/Christina Johnson
Panamerican Beverages Sard Verbinnen & Co.
525/201-6326 212/687-8080
PANAMCO TO RECORD ONE-TIME CHARGE IN FOURTH QUARTER OF 1999
Asset Write-offs in Venezuela and Colombia;
Severance Payments in Venezuela and Brazil
BOARD AUTHORIZES $100 MILLION SHARE REPURCHASE
_________________________________________________________________
MEXICO CITY, December 10, 1999 -- Panamerican Beverages, Inc. (NYSE:
PB), the largest soft drink bottler in Latin America and one of the world's
largest Coca-Cola bottlers, announced today that it will record a US$21.7
million one-time charge in the 1999 fourth quarter as a result of the
write-off of operational assets related to its Venezuelan and Colombian
operations, as well as severance payments related to its Venezuelan and
Brazilian operations. This included the permanent closure of five plants in
Venezuela and the relocation or disposal of associated equipment, the disposal
of obsolete equipment in Colombia, and recent workforce reductions of 203 and
663 respectively in Venezuela and Brazil. This charge is in addition to the
$8.7 million charge recorded in the first half of the year in Venezuela and
Brazil.
Separately the Company announced that its Board of Directors has
approved a share repurchase program for up to US$100 million of the Company's
Class A common stock. The Company may repurchase shares in the open market as
well as in privately negotiated transactions based on prevailing market
conditions.
Said Francisco Sanchez-Loaeza, chairman and chief executive officer
of Panamco: "We are successfully streamlining legacy assets in Venezuela,
reallocating them as needed, to position our operations there for future
growth and improved performance. In Brazil, where we have recaptured
significant market share, the workforce reductions reflect our continued
efforts to
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increase manufacturing and distribution efficiency across all of our
operations and will contribute to improved investor returns in the future."
Commenting on the share repurchase program, Mr. Sanchez-Loaeza
continued: "This program -- the largest to date -- underscores our optimism
about Panamco's future, and the tremendous opportunities that we believe lie
ahead."
The share repurchase program will be funded by the Company's free
cash flow.
Panamco is the largest soft drink bottler in Latin America and one
of the world's largest bottlers of the soft drink products of The Coca-Cola
Company. The Company produces and distributes substantially all Coca-Cola soft
drink products in its franchise territories in Mexico, Brazil, Colombia,
Venezuela, Costa Rica, Nicaragua and Guatemala, along with bottled water, beer
and other beverages. Panamco is an anchor bottler of The Coca-Cola Company.
* * *
Statements made in this press release that are not historical in nature may
include "forward-looking statements" within the meaning of U.S. federal
securities laws. It is important to note that these statements involve a
number of risks, uncertainties and other factors that could cause Panamco's
actual results to differ materially from those included in such
forward-looking statements. Information concerning such factors is contained
in Panamco's Annual Report on Form 20-F for the year ended December 31, 1998,
and other documents subsequently filed by Panamco with the U.S. Securities and
Exchange Commission (the "SEC"), all of which are available from the SEC.
# # #
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PANAMERICAN BEVERAGES, INC.,
(Registrant)
by /s/ Paulo J. Sacchi
-------------------
Name: Paulo J. Sacchi
Title: Senior Vice President-
Finance and Treasurer
Dated: December 16, 1999
