STOCKHOLM, Sweden, March 6, 2002 (PRIMEZONE) -- Electrolux (Nasdaq:ELUX), previously announced, the Electrolux Board has decided to propose that the Annual General Meeting in April 2002 approve a new share-repurchase program and the cancellation of previously repurchased B shares, excluding shares required to meet obligations under the Group's personnel stock-option programs.
The Board's proposal for cancellation of shares will enable additional repurchasing of own shares. The proposal involves reducing the share capital by SEK 137,285,000 through cancellation of 27,457,000 B shares. The details of the proposal are given below.
As part of the procedure for reducing the share capital an issue of redeemable C shares is required. It is proposed that the share issue be directed to Svenska Handelsbanken, which has committed to subscribing to the C shares at par value, corresponding to a total amount of SEK 137,285,000. The C shares will subsequently be redeemed at par value plus interest. Today Electrolux's share capital amounts to SEK 1,830,847,900 and will, following the execution of the reduction, amount to SEK 1,693,562,900. The reduction process is anticipated to be implemented before the end of May 2002.
Furthermore, the Board proposes that the Annual General Meeting authorize additional repurchases and sales of its own A and B shares up until the 2003 Annual General Meeting.
The purpose of the cancellation and additional buybacks is to continually maintain the capability to adapt the capital structure to the needs of the Company, thereby contributing to increased shareholder value, or to use the repurchased shares for financing potential corporate acquisitions and the personnel stock-option programs.
The proposal indicates that a maximum of 10% of the total number of shares may be repurchased and that shares in possession may be sold. Purchases of shares may only be made through transactions on stock exchanges or any other regulated market where the company's shares are quoted and at a price within the prevailing registered price interval.
Shares may be sold in connection with corporate acquisitions, with deviation from the preferential rights of shareholders.
According to the proposal, a maximum of 24,723,258 shares may be repurchased. On the basis of the closing price for B shares of February 28, 2002 and the Group's financial statements for 2001, a maximum buyback of shares would have resulted in an increase in net income per share from SEK 11.35 to SEK 11.75 as well as an improvement in return on equity from 13.2% to 15.1%.
In order to cost effectively meet the Company's obligations under the 2000 and 2002 personnel stock-option programs, the Board has also decided to propose to the Annual General Meeting that repurchased shares be sold within the framework of the option programs.
This information was brought to you by Waymaker http://www.waymaker.net
The full text report can be found at the following URLs www.waymaker.net/bitonline/2002/03/06/20020306BIT00160/wkr0001.doc www.waymaker.net/bitonline/2002/03/06/20020306BIT00160/wkr0002.pdf