GRUPOSURA Receives the Backing of its Shareholders in Order to Continue with its Expansion Strategy

MEDELLIN, Colombia, June 22, 2011 /PRNewswire/ -- At an Extraordinary Meeting held this week, the shareholders of Grupo de Inversiones Suramericana gave their authorization to an increase in the Company's share capital and a new type of stock to be created, namely preferred shares.

The shareholders thus approved an increase in the Company's authorized share capital from 500 to 600 million shares, which shall allow another 130.962.740 shares to be issued in addition to the 469.037.260 currently outstanding. These shall take the form of preferred non-voting stock, based on the shareholders approval granted today. Out of the total amount of shares thus authorized, only those that are strictly required for the Company's expansion plans shall be issued.

Mr. David Bojanini Garcia, CEO of GRUPOSURA, stated: "we received the entire backing of our shareholders, who approved new vehicles with which to carry out the Company's expansion plan. Our aim with our international expansion program is to acquire a position of regional leadership within all those sectors in which we have invested."

The Company made it quite clear at this Extraordinary Shareholders´ Meeting that the approval granted to set up preferred stock does not imply that such shares are going to be issued immediately. Having obtained due authorization from its shareholders, the Company shall be able to access the required mechanisms and have enough financial flexibility in order to go ahead as planned with its expansion strategy and take full advantage of any opportunity that should present itself, even though it was clearly explained to the shareholders that there was no particular business on the agenda at the present time.

The shareholders also gave their approval to converting up to 10% of the Company's ordinary shares outstanding into preferred shares, that is to say a maximum of 46,903,726 shares at a rate of one preferred share for every ordinary share, this in order to provide the greatest amount of liquidity for this new type of share. The conditions for this share conversion shall only take effect as of the moment in which the first issue of preferred shares are issued, and it shall be the Board of Directors who shall define the rules and regulations governing such, as part of the responsibilities delegated by the shareholders today.

It was also announced that GRUPOSURA's preferred shares shall offer an annual preferred dividend of 3% of the value of each share at the moment of issue, this payable during the three years subsequent to the subscription date and on the same dates as the dividends on its ordinary shares are paid out. At the end of this three-year period, the holders of these preferred shares shall receive the same dividend as shall be declared for its ordinary shares.

It is important to note that Grupo de Inversiones Suramericana is a public stock corporation with almost 8,300 shareholders including 182 international funds. When the Board of Directors decides to issue these shares, these shall be offered to all manner of investors, from private individuals to institutional investors, pension funds, international funds and even the Company's current shareholders. These may be traded on the Colombian stock exchange or on the Integrated Latin American Stock Market (MILA in Spanish) among other alternatives that may be made available on an international level.

With the Extraordinary Shareholders´ Meeting held this week, GRUPOSURA completes an excellent first half of this year, having obtained important achievements such as being the first Colombian company to trade on the European stock exchange, namely Latibex. It also obtained an International Investment Grade from both Fitch Ratings and Standard & Poor's and placed USD 300 million in bonds on the international markets with a bid-to-cover ratio of 17, the highest in Colombia's financial history.

GRUPOSURA considers that obtaining financing through new issues of shares is a means of taking full advantage of the momentum enjoyed by both the Company and the country at large, thereby awakening much interest on the part of international investors. Based on the figures recorded over the last ten years, we can safely say that Grupo de Inversiones Suramericana has had the honor of contributing to the positive dynamics of the Colombian economy, having become one of more robust issuers listed on the Colombian stock exchange.

GRUPO DE INVERSIONES SURAMERICANA

Grupo de Inversiones Suramericana is a company listed on the Colombian stock exchange as well as with the ADR- Level 1 program in the United States and the Latibex Market for Latin American Stocks in Euros hosted by the Madrid Stock Exchange. Its portfolio of investments is divided into two main segments: the first is Strategic Investments, comprised of the financial services, insurance and social security sectors as well as complementary services. The second is its Portfolio Investments, mainly in the food and cement sectors

GRUPOSURA is mainly focused on its Strategic Investment segment, playing an active role in the management functions of all its companies with a view to harnessing common synergies, as well as taking full advantage of creating, growing and extending its business.

CONTACT: Communications Office, +011-574-4355935, [email protected]; or Luis Eduardo Martinez, Investor Relations, +011-574-4355628, [email protected]

SOURCE Grupo de Inversiones Suramericana S.A.