Union de Cervecerias Backus & Johnston has proposed a share swap in a deal worth up to $244 million.

The Peruvian brewer said in a statement yesterday that the share swap, involving changing its investment shares and B-class shares for a new class of non-voting preference shares, was designed to establish "a share with a stable yield that can be very attractive for investors."

It will have a fixed dividend, and investors will be offered a 30% premium for the voluntary swap, it added.

The board of Backus approved the proposal last Friday and plans to put it to a shareholders' meeting early next month.

The terms of the offer implied a value of PEN1.20 (US$0.34) per investment share and PEN13.2 ($3.80) per B-class share.

Backus has 514m investment shares and 17.8m B-class shares, making the deal at the prices it outlined - if all shareholders accepted - worth almost PEN852m (US$244m).

Backus' 87.2m A-class shares will not be affected by the swap proposal.

The swap will take place via a public offer, the company said.