Pihlajalinna Plc: Pihlajalinna not to propose dividends to AMG
Pihlajalinna Plc Stock Exchange Release 1st April, 2016 at 18.30 (EET)
PIHLAJALINNA NOT TO PROPOSE DIVIDENDS TO AMG
As stated in Pihlajalinna's Annual Review the distributable unrestricted equity of the parent at the end of the financial year 2015 is 149.5 million euros. The reserve for invested unrestricted equity of the company totals 153.1 million euros. Retained earnings of the parent company totals -3.6 million euros. The company was founded in April 2014 and it became the parent company for Pihlajalinna Group in July 2014. The losses of the parent company have mainly accrued due to the costs of the IPO. At the end of the year 2015, Pihlajalinna Groups retained earnings amounts to 4.1 million euros.
A dividend of 0.02 euros per share has been proposed in the notice to the Annual General Meeting. However, dividends can not be distributed when a parent company has no retained earnings. In a situation like this the distribution of funds should be carried out as repayment of capital from the reserve for invested unrestricted equity instead of dividend distribution. However, resolutions on repayment of capital can not be done unless mentioned in the notice to the AMG.
Thus no dividend distribution will be proposed to the Annual General Meeting on 4th April 2016.
If needed an Extraordinary General Meeting will be organized in order to decide on the distribution of funds during 2016.
Terhi Kivinen, SVP, Communications, Marketing and IR, Pihlajalinna Plc, +358 40 848 4001, firstname.lastname@example.org
Nasdaq Helsinki Oy