Holmen - Dividend proposal

Holmen proposal Ordinary dividend of SEK 9 per share and extra dividend of SEK 60 per share On Wednesday, Holmen's Board decided to recommend to the AGM scheduled for March 20, 2001 that an ordinary dividend of SEK 9 per share, and an extra dividend of SEK 60 per share, be paid for the 2000 financial year. The ordinary dividend will absorb MSEK 720 and the extra dividend MSEK 4,798. Provided the AGM resolves in favour of the Board's proposal, Holmen's debt/equity ratio is expected to be approximately 0.35 after payment of the total dividend of some MSEK 5,500. Holmen's long-term target for its capital structure is to have a debt/equity ratio of between 0.5 and 0.7. Holmen's target for its ordinary dividend each year is that it should correspond to some 5-7 per cent of the company's equity. A dividend of SEK 11 per share was paid for the 1999 financial year. The proposed dividend of SEK 9 per share corresponds to some 6 per cent of equity as calculated after the proposed extra dividend, and represents an adjustment to the changed capital structure. The Board has also decided to recommend to the AGM that the 8,885,826 Holmen Series "B" shares that were repurchased during this year be withdrawn, as a result of which the share capital will be reduced by MSEK 444. Furthermore, the Board has decided to propose to the AGM that the Board be authorised to repurchase up to 10 per cent of the company's shares. This corresponds to 7,997,245 shares after the above withdrawal. For further information, please contact Per Ericson, President and CEO of Holmen (+46 8 666 21 00). ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/12/13/20001213BIT00630/bit0001.doc http://www.bit.se/bitonline/2000/12/13/20001213BIT00630/bit0002.pdf