Securities registered or to be registered pursuant to section 12(b) of the Act.
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
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NOTICE OF MATERIAL EVENT
(Santiago, Chile, August 10, 2018) - Compañía Cervecerías Unidas S.A.
("
CCU
"
) reported as a material event (the
"
Material Event"
or "
Essential Event"
) the following:
a) Background
On May 7, 2014, CCU entered the Bolivian market through the acquisition of 34% of the share capital of Bebidas Bolivianas BBO S.A. (hereinafter, "
BBO
"), a multi-category beverage company, dedicated to the production, marketing and sale of alcoholic and non-alcoholic beverages in Bolivia, under proprietary and licensed brands, among which Mendocina, Malta Real, Cordillera beer and Heineken stand out.
On the same date, CCU signed a Shareholders´ Agreement with the Monasterio Group (hereinafter "
GM
"), the holder
of the remaining 66% of BBO
'
s equity,
which contemplates CCU's right, through a call option, to acquire an additional stake in BBO that allows it to become the owner of 51% of the shares of BBO (hereinafter, the "
Option
").
b) Description of the Transaction
In accordance with the above, and as unanimously approved by the directors at a meeting held on April 4, 2018, CCU informed GM, by means of letter dated August 2, 2018, of the exercise of the Option in the amount necessary to become the owner of 51% of the shares of BBO; the contracts for the sale and transfer of shares from GM to CCU, according to the procedure established in the Shareholders´ Agreement referred to above, are to be executed by the parties within 10 (ten) calendar days as of the date of said communication.
As agreed to by the parties, the purchase price of the shares subject to the Option amounts to the aggregate sum of USD 8,500,000 (eight million five hundred thousand U.S. dollars).
c) Status of the Transaction
In compliance with the procedure established in the Shareholders' Agreement, the exercise of the Option for 17% of BBO's share capital was consummated yesterday, August 9, 2018, through the execution of the above mentioned share purchase agreements between CCU and GM.
Additionally, on the date of the sale of the shares subject to the Option, the parties entered an Addendum to the Shareholders´ Agreement referred to above.
d) Effects of the exercise of the Option on the Results of CCU
The Board of Directors considered that the execution of the Option allows CCU to consolidate BBO´s operations, which constitutes a material event and is in line with
CCU s 2016
-2018 strategic objectives, in particular, the growth in the categories and countries in which the Company currently participates, as well as the further strengthening of the CCU Business Model.