(Adds background on Bimbo acquisition strategy)
MEXICO CITY, Sept 18 (Reuters) - Mexican bread maker Grupo Bimbo said on Thursday a meeting of its shareholders had approved a plan to issue up to an additional 201.25 million new “A” shares of the company.
Based on Bimbo’s Wednesday closing price of 39.94 pesos, the issue could be worth up to 8.04 billion pesos ($607.17 million).
Bimbo, which also makes Thomas’ English Muffins and Tia Rosa tortillas, is raising funds to pay down a credit line it took out to pay for its acquisition earlier this year of Canada Bread, as well as for general corporate financing.
The bread maker has been buying up bakeries in the United States, Spain and most recently Canada, helping secure its position as the world’s No. 1 baker by sales volume and revenue.
1 US dollar = 13.2417 Mexican pesos Reporting by Christine Murray and Veronica Gomez. Editing by Andre Grenon