SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2008
CRESUD SOCIEDAD ANONIMA COMERCIAL INMOBILIARIA FINANCIERA Y AGROPECUARIA
(Exact name of Registrant as specified in its charter)
CRESUD INC.
(Translation of registrant’s name into English)
Republic of Argentina
(Jurisdiction of incorporation or organization)
Moreno 877, 23rd Floor, (C1091AAQ)
Buenos Aires, Argentina
(Address of principal executive offices)
Form 20-F T Form 40-F
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No T
CRESUD S.A.C.I.F. and A.
(THE “COMPANY”)
REPORT ON FORM 6-K
Attached is an English translation of the summary of the letter dated August 26, 2008, filed by the Company with the Bolsa de Comercio de Buenos Aires and the Comisión Nacional de Valores:
By letter dated August 26 2008, the Company reported that its Board of Directors has decided to establish the terms and conditions for the acquisition of its own shares issued by the Company under the provisions of Section 68 of Law 17,811 (added by Decree number 677/2001) and the Rules of the Comision Nacional de Valores. The Board of Directors has taken into account the following circumstances:
| 1. | The current international macroeconomic context which affects directly the price of commodities. |
| 2. | The fluctuations in the capital market in general, following the reduction of prices in international markets triggered by the crisis in the mortgage loans market, specially in the United States of America. |
| 3. | The material impact on the price of domestic shares, including the reduction in the quotation of the shares of the Company. |
| 4. | The distortion of such prices when considering the financial strength of the Company, as evidenced by the quality of its assets, including the lands of great productive value and appreciation potential, and the productive business that the Company develops in Argentina and in Brazil. |
| 5. | The price/income ratio resulting from the profits evidenced by the quarterly financial statements ended March 31, 2008. |
| 6. | The statements made by specialists according to which international investors’ need for liquidity within the financial international crisis would be affecting the quotations negatively and that the risk premium, comparatively higher than in other countries, would cause Argentina to be more exposed to market turbulence. |
Therefore, given the above stated reasons and in line with the commitments of the Board of Directors to the Company and its shareholders, and taking into account the favorable opinion of the Audit Committee and the Supervisory Committee, the Board of Directors has decided that the Company will acquire its own shares under the provisions of Section 68 of Law 17,811 (added by Decree number 677/2001) and the Rules of the Comision Nacional de Valores, in order to help to reduce the fluctuations of the quotation of shares and strengthen the shares in the market, minimizing any possible temporary imbalances between supply and demand within the market, and due to the excessive cost of capital resulting from the current quotation prices, and has decided to establish the following terms and conditions for the acquisition of its own shares issued by the Company:
| 1. | Maximum amount of the investment: Up to Ps. 30,000,000. |
| 2. | Maximum number of shares to be acquired: Up to 10,000,000 common shares, book entry, par value of Ps. 1,00 each and entitled to one vote per share (the “Shares”), in the form of shares or American Depositary Shares or ADS representing 10 shares each, which amount does not exceed the limit of 10% of the capital stock of the Company, as established by the applicable argentine laws and regulation. |
| 3. | Daily limitation on market transactions: In accordance with the applicable regulation, the limitation will be up to 25% of the average volume of the daily transactions for the Shares in the markets during the previous 90 days. |
| 4. | Payable Price: Between a minimum of Ps. 3 per Share and up to Ps. 3.50 per Share. |
| 5. | Term for the acquisition: 70 calendar days from the date of the publication of the information in the Bulletin of the Buenos Aires Stock Exchange, subject to any renewal or extension to be duly informed to the public in such Bulletin. |
| 6. | Outstanding shares: as of July 31, 2008 the Company has 501,531,865 outstanding common shares. |
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Buenos Aires, Argentina.
CRESUD SOCIEDAD ANONIMA COMERCIAL INMOBILIARIA
FINANCIERA Y AGROPECUARIA
| By: | /S/ Saúl Zang | |
| Name: | Saúl Zang | |
| Title: | Vice Chairman of the Board of Directors |
Dated: August 26, 2008