Eniro intends to transfer about SEK 2 billion to shareholders

Eniro’s Board of Directors intends to propose a transfer of about SEK 2 billion to the shareholders. This is in part a consequence of the divestment of the German subsidiary Wer liefert was? The transfer is expected to be effected through a redemption program during the fourth quarter of 2007.

The sale of WLW is expected to amount to about SEK 1.1 billion (EUR 115 M). Combined with Eniro’s strong cash flow, this makes it possible for the company to implement a refinancing.

Eniro signed a five-year loan agreement today with the existing bank consortium (Danske Bank, DNB NOR, Handelsbanken, Nordea, Royal Bank of Scotland, SEB and Swedbank) with the result that the company will have an net debt ratio of about five times operating profit before depreciation (EBITDA). The loan agreement has an initial credit framework corresponding to SEK 13 billion and is intended to refinance Eniro’s existing loan agreement, finance current operations and to enable a capital distribution to the shareholders. The loan will be amortized with approximately SEK 475 M per year.

With the divestment of WLW and the new financing, the Board of Directors considers that there is scope for a larger capital distribution to the shareholders. Following approval by the competition authorities and as soon as the sale of WLW is completed, the Board of Directors intends to convene an Extraordinary General Meeting. The Board intends to propose a voluntary redemption program totaling about SEK 2 billion and corresponding to about SEK 11 per share to be implemented during the fourth quarter of 2007.

Eniro’s dividend policy is that 75 percent of net profit for the year shall be distributed to the shareholders. This policy also remains firm for the coming years and will not be affected by the proposed extra capital transfer.