Electrolux to buy back own shares
Electrolux to buy back own shares Electrolux has today decided to buy back its own shares, in accordance with the authorization by the Annual General Meeting on April 25. The aim is to buy up to 10% of the total number of shares during the period prior to the next Annual General Meeting. Buy-backs will be implemented with due consideration to the Group's target of a net debt/equity ratio not exceeding 0.80. The intention is among other things to continously be able to adapt the capital structure to the needs of the Company, thereby contributing to increased shareholder value, or in connection with financing of potential company acquisitions as well as the Group's option program. Purchases of shares will be made through transactions on the stock exchanges where the Electrolux share is quoted, at prevailing market prices. On the basis of the figures for 1999, a buy-back of 10% of the shares at the closing price of SEK 161 on May 23, 2000, would have led to an increase of approximately 6% in net income per share, and the return on equity would have risen from 17% to over 21%. Further information For further information please contact Gösta Bonde, Deputy Group Treasurer, at telephone +46 8 738 61 62 or Åsa Mattsson Stenqvist, Vice President Investor Relations, at +46 8 738 64 94. The Electrolux Press Hotline is available at +46 8 657 65 07. Electrolux is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chain saws, lawn mowers, and garden tractors. In 1999, Group sales were SEK 120 billion and the Group had 93,000 employees. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use. The Electrolux Group includes famous appliance brands such as AEG, Zanussi, Frigidaire, Eureka, and Husqvarna. For cancellation of or changes to this fax distribution service, please return this document, with your name, company, and fax number, stating what you want to change, to fax no +46 8 738 74 61. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/24/20000524BIT00780/bit0001.doc http://www.bit.se/bitonline/2000/05/24/20000524BIT00780/bit0002.pdf