Oriflame Cosmetics S.A. announces the intention to distribute €2.60 per share through a share redemption programme with tradable rights
As communicated in the 2005 year-end report, the Board of Directors of Oriflame Cosmetics (the “Company”) will, in addition to a dividend of EUR0.90 per share, propose an additional distribution of EUR2.60 per share to the General Meeting (“GM”) on 19 May 2006. The distribution to shareholders thus totals EUR3.50 per share, amounting to EUR209m. The background to the distribution is the Company’s strong financial position and good cash flow generation from operations.
The Board of Directors has decided to propose to the General Meeting that the additional distribution shall be carried out in the form of a share redemption programme with tradable and transferable redemption rights. Use of voluntary redemption for the distribution provides the shareholders the freedom to choose between redeeming the shares or selling the redemption rights and thereby retaining their Oriflame shares.
The proposal and preliminary timetable entails:
- The General Meeting on 19 May 2006 will decide on the Board’s redemption proposal.
- An information memorandum about the offering will be sent to shareholders prior to the application period and will also be made available on www.oriflame.com.
- Holders of shares as well as Swedish Depository Receipts (“SDRs”) will be included in the offer to redeem shares.
- The application period is planned for the latter part of May and June.
- The redemption rights will be tradable on the Stockholm Exchange during the application period.
- Payment of the redemption amount is expected in July.
The full offer will be made public no later than two weeks prior to the GM.
Oriflame is an international cosmetics company selling direct, with sales in 57 countries. Oriflame offers a complete range of high quality skincare, fragrances, colour cosmetics, toiletries and accessories, marketed through a Sales Force of over 1.6 million independent Sales Consultants. Although the company has grown rapidly it has never lost sight of its original business concept - natural Swedish cosmetics, sold from friend to friend. Oriflame is a co-founder of World Childhood Foundation. Oriflame Cosmetics is listed on the Stockholm Exchange.
- Contact Information
- Kevin Kenny
- Chief Financial Officer
- Oriflame Cosmetics
- Contact via E-mail
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