Board proposes automatic share redemption procedure
Boliden has generated substantial cash flows over the past year and the financial position is strong. The net debt/equity ratio at the year-end was 11%, which means that the balance sheet is lower than Boliden’s target of 20% during an economic upturn. The Board of Directors intends, therefore, to propose that the AGM approve an extra dividend payment of SEK 5.75 per share by means of an automatic share redemption procedure.
The Board of Directors’ proposal, which will jeopardise neither Boliden’s ability to handle any deterioration in market terms nor to finance additional growth, asks the AGM to approve a share split and an automatic share redemption procedure whereby each share is divided into one ordinary share and one redemption share. The redemption share will then automatically be redeemed for SEK 5.75 per share, corresponding to a total of SEK 1,573 m. The redemption procedure also includes a reduction of the company's share capital, as proposed recovered through a bonus issue.
This, in combination with the proposed ordinary dividend SEK 8.25 per share, will, subject to the approval of the AGM, mean that shareholders receive SEK 14.00 per share, corresponding to a total of SEK 3,829 m.
A preliminary record date of 17 May 2018 has been proposed for the share split. Trading in the redemption shares is estimated to take place on Nasdaq Stockholm on 18 May 2018 – 8 June 2018. Boliden expects payment for the redemption shares to be disbursed on or around 15 June 2018.
For further information, please contact:
Klas Nilsson, Director Group Communication
tel: +46 70 453 65 88
This information comprises the information that Boliden AB is obliged to publish pursuant to the EU’s Market Abuse Regulation. The information was released for publication, through the agency of the Director Group Communications, on the 14th of February 2018 at 07.45 (CET).
Boliden is a metals company with a commitment to sustainable development. Our roots are Nordic, but our business is global. The company’s core competence is within the fields of exploration, mining, smelting and metals recycling. Boliden has approximately 5,500 employees and a turnover of SEK 40 billion. Its share is listed on NASDAQ OMX Stockholm, segment Large Cap.