TV Azteca Shareholders Approve Cash Distribution of US$130 Million for December 14, 2004
November 24 2004 - 7:54PM
PR Newswire (US)
TV Azteca Shareholders Approve Cash Distribution of US$130 Million
for December 14, 2004 MEXICO CITY, Nov. 24 /PRNewswire-FirstCall/
-- TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA; Latibex:
XTZA), one of the two largest producers of Spanish language
television programming in the world, held today a shareholders'
assembly at its corporate offices in Mexico City. In the meeting,
shareholders approved a cash distribution of US$130 million to be
made on December 14, 2004. The distributions are part of TV
Azteca's six-year plan for uses of cash, which entails making
disbursements to shareholders above US$500 million and reducing the
company's debt by approximately US$250 million within a six-year
period that started in 2003. The cash distributions made to date,
when added to the upcoming disbursement of US$130 million,
represent an aggregate amount of US$325 million, equivalent to a
17% yield on the November 23, 2004 ADR closing price. Prior
distributions include: US$125 million on June 30, 2003, US$15
million on December 5, 2003, US$33 million on May 13, 2004, and
US$22 million on November 11, 2004. In the assembly, shareholders
also authorized an increase of Ps.1,950 million in TV Azteca's
repurchase fund to Ps.3,050 million, up from the prior amount of
Ps.1,100 million. On April 27, 2004, the board of directors
approved an increase in the company's repurchase fund up to the
maximum permitted by the Mexican securities' law, following a
recommendation from TV Azteca's investment committee. Shareholders
also approved the following measures for management oversight,
which were agreed by the company's board on October 19, 2004. * The
establishment of a new Audit Committee that will consist of three
independent directors. The new Audit Committee will take over the
current responsibilities of the Related Party Transactions
Committee, which will be dissolved. * The implementation of an
enhanced Ethics Program, and the appointment of a Chief Oversight
Officer. The new Program will include the adoption of a rigorous
Code of Business and Ethics and will apply to directors, officers
and employees of TV Azteca. * The establishment of a Blue Ribbon
Committee, consisting of two prominent members of the Mexican
business community, to select prospective independent board members
of TV Azteca. * The preparation and publication on the TV Azteca
website of the company's management oversight guidelines. * The
implementation of rigorous disclosure controls through a Disclosure
Committee. Shareholders also ratified the powers of attorney
granted to Ricardo B. Salinas, Chairman of the Board of TV Azteca.
Nevertheless, Mr. Salinas has committed to exercise his powers of
attorney in material or related party transactions, consulting with
the board of directors. TV Azteca shareholders ratified the
company's board members, and accepted the resignations of two
directors presented to the company in May 2004. In addition, Mr.
Othon Frias, prior alternate secretary of the board, was named
secretary of TV Azteca's board of directors. The shareholders
assembly also received notice of the appointment, by the board of
directors, of Salles, Sainz-Grant Thornton, S.C., as the new
independent auditing firm for TV Azteca, replacing
PriceWaterhouseCoopers. The board believes that the change is
consistent with recent developments in corporate governance that
encourage rotation of independent auditing firms of public
companies, and considered appropriate to replace its independent
auditors after 11 years of continuous service. The Board of
Directors expects that the appointment of Salles, Sainz-Grant
Thornton, S.C. will result in a healthy change in the company's
auditing practices. The company noted that Salles, Sainz-Grant
Thornton, S.C. is based in Mexico with more than 25 years of
experience, and is registered with the U.S. Public Company
Accounting Oversight Board. The company and its board of directors
thank PriceWaterhouseCoopers for the professional work provided to
TV Azteca over the past 11 years. 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 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, 5255-1720-9167,
; or Omar Avila, 5255-1720-0041, , or Media Relations, Tristan
Canales, 5255-1720-5786, , or Daniel McCosh, 5255-1720-0059, , all
of TV Azteca, S.A. de C.V. Web site: http://www.tvazteca.com.mx/
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