Redemption of shares in AB Custos and increased dividend to SEK 11.50 per share
Redemption of shares in AB Custos and increased dividend to SEK 11.50 per share Proposed dividend for 1998: SEK 11.50 per share Redemption of each fifth share Redemption amount: SEK 210 per share plus dividend of SEK 11.50 Custos' Board of Directors today decided to propose that the Annual general meeting on April 14, 1999 approves a proposal regarding the right to redeem each fifth Custos share with payment consisting of SEK 210 per share plus dividend. In comparison, Custos' net asset value was SEK 198 per share at October 21, 1998. Custos' Board of Directors proposes a dividend of SEK 11.50 (7.25) per share for the year 1998, an increase of 59%. The calculation of the dividend is based on the rules governing investment companies. Redemption will be effected through a reduction of the share capital by an amount corresponding to the par value (SEK 25 per share) of the redeemed shares and by utilising unappropriated earnings. If all shareholders accept the offer, 7,937,818 shares in Custos will be redeemed with payment of MSEK 1,667. The reason for the redemption is that Custos' Board of Directors and Executive Management consider the investment company discount in Custos to be higher than is acceptable. The share redemption provides shareholders with an opportunity to receive more than the net asset value for a part of their shareholding. At October 21, 1998 Custos' discount to net asset value amounted to 19% for Custos Series A shares and for 20% for Custos Series B shares. "For Custos, this is a measure showing that we are serious in our ambition to eliminate the discount in our share price. Also, we are currently working towards co-investment schemes that would create an increased flexibility in our capital structure. This would mean that we gain access to more capital, despite a smaller capital base of our own." says Christer Gardell, CEO of Custos. Further information regarding the redemption will be distributed at a later stage. Stockholm, October 22, 1998 AKTIEBOLAGET CUSTOS (publ) The Board of Directors For further questions please contact Mr Christer Gardell (+46 8 440 57 70). This press release may not be distributed in the USA and Canada. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/10/22/19990223BIT00600/bit0001.doc http://www.bit.se/bitonline/1998/10/22/19990223BIT00600/bit0002.pdf