Greek Coke bottler to lower capital, return 34c a share

Coca-Cola Hellenic (CCH), the world's second-largest bottler of Coca-Cola, said it would propose a capital return to its shareholders of 34 cents a share, reducing the par value by 125 mln euros.
"As a separate item, Coca-Cola Hellenic also announces a proposal for a further decrease in the par value of the company's shares by approximately 55 mln euros, or 0.15 euros per share, in order to extinguish accumulated losses in an equal amount," CCH said in a statement.
“The proposed transaction will be financed from the cash position of the company,” it said.
The announcement added that the board “believes that the proposed recapitalisation is appropriate, as it reflects the company's strong and sustained cash flow generation. At the same time it will enable Coca-Cola Hellenic to maintain an efficient balance sheet.
The company said the proposal would be subject to approval by shareholders at an annual general meeting on June 25.
CCH buys syrup concentrate from Coca-Cola and bottles and distributes drinks including Coca-Cola, Sprite and Fanta in 27 countries in Europe and also in Nigeria.
CCH is expected to reveal a sharply wider first-quarter net loss on Thursday, hurt by depressed demand in Greece and rising input costs.
The rise in sugar and juice prices as of the second quarter last year and cold weather in central and eastern Europe is also seen hurting its profit.
The average forecast in a Reuters poll of seven banks and brokerages was for a comparable net loss of 14.2 mln euros.
CCH had a net loss of 1 mln euros in the first quarter a year ago – traditionally one of the bottler's less profitable.
Standard & Poor's earlier last week cut its outlook for CCH to negative from stable, citing low consumer sentiment in many of its markets and persistenlty high raw material prices.
The stock trades at 15.4 times estimated 2012 earnings per share, compared with 16.3 for rival Pepsico.