SOLNA, Sweden, April 10, 2003 (PRIMEZONE) -- NCC's Annual General Meeting on April 10, 2003:
-- Dividend of SEK 2.75 (2.25) per share to be paid.
-- In addition to the cash dividend, all the shares in the
machinery-rental company Altima Group AB will be spun off to
shareholders.
-- The Board received renewed authorization to repurchase
a maximum of 10 percent of the total number of shares
During his address to the Annual General Meeting, NCC's President and Chief Executive Officer, Alf Goransson, made the following comments on the current conditions in the Nordic construction, housing and real estate markets:
"According to our estimates, the Nordic market for construction contracts is not growing. Recent signals indicate that the market will probably shrink in 2004. We must therefore prepare ourselves for even lower market growth when we enter 2004. For example, there are clear indications that the previously robust housing market, particularly in Stockholm, Oslo and Copenhagen, is about to slacken."
During his address, Alf Goransson also commented on the Swedish Competition Authority's lawsuit against the asphalt companies, including NCC, that are suspected of illegal cartel collusion, and the Swedish Competition Authority's claim that NCC should pay a penalty fee of SEK 472 million for its breach of competition legislation:
"The filing of the lawsuit has marked the start of a legal process, the verdict of which is not expected until autumn 2004, at the earliest. It is, of course, gratifying that the Competition Authority utilized the new competition legislation, and therefore reduced the size of its claim against NCC because of the company's cooperation in the matter. However, we believe that we have favorable prospects of achieving a further reduction in the final penalty fee following the legal process. Obviously, it is difficult to foresee the final outcome. Accordingly, we have decided, until further notice, to post a contingent liability rather than a provision for a loss. Any provision that affects earnings will be made if and when a reliable estimate of the size of the penalty fee can be made."
The Meeting approved the Board of Directors' proposal that a cash dividend of SEK 2.75 per share be paid per share for the 2002 fiscal year. The dividends are expected to be sent to shareholders via VPC (the Swedish Securities Register Center) beginning on April 22, 2003.
In addition to the cash dividend, the Meeting also approved a spin-off of all the shares in the machinery-rental company Altima Group AB. Each multiple of ten NCC AB shares will qualify for one share in Altima Group AB. It is estimated that the spin-off will be effected around the end of 2003. Altima's Board of Directors intends to apply for a listing of Altima shares on Stockholmsborsen's O List. A prospectus covering the initial listing of Altima will be published in ample time prior to the initial day of trading in Altima shares.
The Meeting authorized the Board to repurchase a maximum of 10 percent of the total number of NCC shares prior to the next Annual General Meeting. The shares are to be purchased on Stockholmsborsen at prices within the registered span of share prices at each particular purchase occasion. The reason for the repurchases is to provide the Board with an opportunity, prior to the next Annual General Meeting, to adjust the Company's capital structure.
To date, NCC has repurchased 6,035,389 Series B shares at an average price of SEK 73.35, corresponding to 5.6 percent of the total number of shares.
The Meeting re-elected Johan Bjorkman (chairman), Viveca Ax:son Johnson and Erik Asbrink to the Nomination Committee.
The Meeting re-elected Antonia Ax:son Johnson, Tomas Billing, Alf Goransson, Fredrik Lundberg and Marcus Storch to the Board. Anders Rydin was elected new Member of the Board. Anders Rydin was previously Executive Vice President and Chief Financial Officer at AGA AB, Investor AB and Skandinaviska Enskilda Banken AB, and Board member of, among other companies, Frontville AB (Chairman), Cardo AB, Enskilda Securities AB and SEB Trygg Liv, and of Kapitalmarknadsgruppen and the Swedish Association for Share Promotion
At the statutory meeting of the Board of Directors held directly after the Annual General Meeting, Tomas Billing was re-elected Chairman and Fredrik Lundberg was re-elected Deputy Chairman of the Board. The Board decided, based on the Annual General Meeting's authorization, to repurchase a maximum of 10 percent of the total number of NCC shares.
For further information, please contact: Annica Gerentz, Investor Relations Manager NCC AB Tel +46 8 595 52204 or +46 70 398 4209 Gisela Lindstrand, Press Relations Manager NCC AB Tel +46 8 585 52346 or +46 70 392 9500
All of NCC's press releases are available on www.ncc.info
NCC is one of the leading construction and property development companies in the Nordic region. NCC had in 2002 sales of SEK 45 billion, with 25,000 employees.
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