Volati Board recommends that no dividend be paid to preference and ordinary shareholders
In connection with the notice of the Annual General Meeting on 25 June 2020, the Board of Directors recommends that the Meeting refrain from adopting a dividend for preference shares or ordinary shares.
The adjustment of the preference share dividend compared with the Company’s year-end report for 2019 is based on uncertainty regarding interpretation of the rules on government support for short-time work. The Board does not therefore consider it appropriate at this stage to decide on and implement dividends.
Volati reported significantly improved earnings for Q1 2020. EBITA amounted to SEK 62 million, an increase of 65 percent compared with the same quarter the previous year. Up to 22 May, the effects of the Covid-19 pandemic have only had a limited impact on the Group as a whole. However, Akademibokhandeln has been affected so adversely that they have applied for and been granted support from the Swedish Agency for Economic and Regional Growth (Tillväxtverket) for short-time work.
“The principle that companies receiving the short-time work allowance should show restraint with regard to dividends is reasonable. As early as 24 March, we decided to withdraw the ordinary share dividend to ensure that we could act from as strong a position as possible. We have tried to understand how Tillväxtverket views preference share dividends which are regulated by the articles of association. As we have been unable to obtain any clarity on this matter, the Board, in accordance with the precautionary principle, unfortunately sees no other option than to recommend that the Meeting refrain from adopting a preference share dividend,” says Patrik Wahlén, Chairman of the Board of Volati.
Provided that the AGM – in accordance with the proposal of the Board – does not decide on any preference share distribution, preference shareholders’ preferential right to a dividend will increase in accordance with what is prescribed in the Company’s articles of association. This means that a preference dividend that is not submitted on the specified record date is calculated using a factor corresponding to an annual interest rate of 10.5 percent from the time when payment should have been made in accordance with the articles of association. The preference dividend amounts to approximately SEK 16 million per quarter. Record dates for dividends are 5 February, 5 May, 5 August and 5 November. If one of these days is not a banking day, the record date shall be the preceding banking day. Preference share dividend payments shall be made on the third banking day after the record date.
It is the Board’s intention to convene an Extraordinary General Meeting to decide on a preference share dividend (the enumerated amount considered) as soon as possible in view of the rules for short-time work allowance.
As previously announced, Volati’s Board is also not proposing that the Annual General Meeting adopt any ordinary share dividend.
This information is information that Volati AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 12:45 CET on 25 May 2020.
For further information, please contact:
Mårten Andersson, CEO Volati AB, +46 72-735 42 84, marten.andersson@volati.se
Andreas Stenbäck, CFO Volati AB, +46 70 889 09 60, andreas.stenback@volati.se
Volati AB (publ)
Engelbrektsplan 1, SE-114 34 Stockholm
Tel: +46 8 21 68 40
Email: info@volati.se
Corporate reg. no. 556555-4317
About Volati
Volati is a Swedish industrial group, formed in 2003, organised in four business areas: Trading, Consumer, Akademibokhandeln and Industry. Volati mainly acquires reasonably valued companies with proven business models, leading market positions and strong cash flows and develops them with a focus on long-term value creation. The strategy is to build on the companies’ identity and entrepreneurial spirit, adding leadership, expertise, processes and financial resources. Volati has operations in 16 countries, over 2,000 employees and annual sales of approximately SEK 7 billion. Volati’s ordinary shares and preference shares are listed on Nasdaq Stockholm. Further information is available at www.volati.se.