AssiDomän proposes redemption of shares for SEK 4.5 billion
AssiDomän proposes redemption of shares for SEK 4.5 billion The Board of Directors of AssiDomän decided today to propose a transfer of approximately MSEK 4,500 to AssiDomän's shareholders. This transfer is proposed to be effected through redemption of shares. Redemption requires a resolution at a general meeting. The Board has therefore decided to convene an extraordinary general meeting on 9 October 2000. Detailed terms for the redemption of shares will be published on 29 September 2000. Provided the meeting decides to approve the Board's proposal, a redemption offer will be submitted to all shareholders in October 2000. Payments to those shareholders who accept the offer are expected to be made in March/April 2001. The background is the now completed sale to Frantschach of AssiDomän's sack operations, the Sepap and Dynäs paper mills, and Barrier Coating. When this agreement was concluded in May, AssiDomän announced its intention to transfer the major part of the sales proceeds to shareholders. The sale to Frantschach marks a significant step in the work of focusing operations and enhancing profitability in the Group. One key part of this work is participation in the creation of competitive structures for each respective industrial operation. In addition to efforts to create an efficient and appropriate capital structure, a review of the Group's various activities and suitable ownership structures for these is under way. This includes evaluating the long-term suitability of keeping the forestry and industrial activities together in view of the different characteristics of these two operations, or whether a separate listed industrial company and pure-play forest company respectively can provide greater shareholder value. Sustained shareholder value will be the decisive factor for any decision regarding refocusing the Group and the choice of technique for its implementation. AssiDomän AB Corporate Communications 7 September 2000 For further information: Bernt Magnusson, Board Chairman, AssiDomän AB, tel +46 70 209 69 51 Gunnar Palme, President and CEO, AssiDomän AB, tel +46 8 655 92 80 Peter Månsson, Investor Relations, AssiDomän AB, tel +46 8 655 92 78 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/09/07/20000907BIT00640/bit0001.doc http://www.bit.se/bitonline/2000/09/07/20000907BIT00640/bit0002.pdf