MEXICO CITY, May 2, 2017 /PRNewswire/ -- Hoteles City Express, S.A.B. de C.V. ("Hoteles City Express" or "the Company") (BMV: HCITY) hereby informs that by resolution validly adopted by the shareholders of the Company at the Ordinary Annual Shareholders' Meeting held yesterday, April 27, 2017, It was agreed to cancel
that represent 3.5%
of the Company's shareholders equity
The shares to be canceled were purchase through the Company's Share Repurchase Program, which was approved on December 5, 2013 by the shareholders' meeting and it is used with the objective of increasing the liquidity of its shares and participating in times of volatility in the market.
Also, by resolution of the Ordinary Annual General Meeting of Shareholders, the increase in the amount dedicated to the acquisition of own shares was approved to result in a
Total Authorized Amount of up to
(Six hundred million pesos 00/100)
It should be noted that because the shares representing the Company's shareholders' equity do not have nominal value expression, it is not necessary to carry out a capital reduction in order to execute the cancellation of shares.
Likewise, since the shares to be canceled cannot be represented or voted at the shareholders' meetings, nor exercise social or economic rights of any kind, in terms of what is established in article 56 of the Ley Mexicana de Valores, The cancellation of shares does not have any effect on the rights of the shareholders of the Company.
The Company does not anticipate any change or modification to its growth plans or long-term business strategy as a result of this cancellation of shares as it maintains a stable and solvent financial position.
The number of outstanding shares of the company after cancellation amounts to a total of 371,500,000 shares.
For further information on the cancellation of shares or any other subject related to the resolutions of the shareholders' meeting please contact the Corporate Finance and Investor Relations department of the Company.
About Hoteles City Express:
Hoteles City Express is the leading and fastest-growing limited-service hotel chain in Mexico in terms of number of hotels, number of rooms, geographic presence, market share and revenues. Founded in 2002, Hoteles City Express specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited-service hotel chain geared mainly towards domestic business travelers. With 124 hotels in operation located throughout Mexico, Costa Rica, Colombia and Chile, Hoteles City Express operates five distinct brands: City Express, City Express Plus, City Express Suites, City Express Junior and City Centro to serve different segments of its target market. In June 2013, Hoteles City Express completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol "HCITY"; furthermore, on October 8, 2014, Hoteles City Express completed a follow on with the aim of accelerating its growth in new hotels in coming years.
For further information, please visit our website: https://cityexpress.com/en/investors/
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SOURCE Hoteles City Express, S.A.B. de C.V.