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%.
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%.
For further information contact:
Gösta Bonde, Deputy Group Treasurer, +46 8 738 61 62, gosta.bonde@notes.electrolux.se
