Philips announces EUR 1.63 billion share repurchase program over ’second trading line’ on Euronext Amsterdam
Tuesday, January 09, 2007 - Amsterdam, The Netherlands – In line with earlier announcements on August 3 and October 16, 2006, Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced that it will start a EUR 1,633 million share repurchase program for capital reduction purposes over a second trading line on Euronext Amsterdam to complete the return of a total of EUR 4 billion to its shareholders. The program over a second trading line will start January 22, 2007, and is expected to be completed before the end of 2007. The second trading line will enable Philips to buy back shares from holders who are tax-exempt or are able to achieve tax compensation. The maximum number of shares that will be repurchased under this program depends on the development in the share price during the course of the program.
Mechanics of ‘Second Trading Line’
This repurchase program will take place over a so-called ‘second trading line’ which has been established on Euronext Amsterdam for this purpose and for which a separate security code will be used (ISIN NL0000009322). On this trading line, shares will be purchased exclusively by Philips. Trades on the second trading line will take the form of regular ‘off exchange’ transactions of at least 10,000 shares and will be settled net of 15% dividend withholding tax. Furthermore, trades on the second trading line shall include a small transaction cost reimbursement to take into account the administrative and financing costs incurred by investors e.g. to claim relief from Dutch dividend withholding tax.
Regular trading in Philips’ ordinary shares on Euronext Amsterdam and on the New York Stock Exchange will continue as normal. Philips is at no time obliged to engage in transactions to buy its own ordinary shares via the second trading line, and will act as buyer depending on market conditions and the prevailing ordinary share price.
Holders contemplating selling shares over the second trading line should contact their tax advisers to carefully examine their tax position. For more information about transactions on the second trading line and the execution of the program, please click here.
The repurchase program does not constitute an offer to purchase or a solicitation of an offer to purchase any securities, or an invitation by or on behalf of Philips to purchase any such securities in circumstances or in any jurisdiction in which such an offer or solicitation is unlawful.
The repurchase program is not intended to constitute a tender offer by or on behalf of Philips for its own ordinary shares. Philips has taken no steps to allow for a tender offer for its own ordinary shares in any jurisdiction. Persons contemplating selling their shares on the second trading line should consult their legal and tax advisers to verify whether they are legally permitted to do so and to carefully investigate the tax consequences of such a sale.
This press release may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such a jurisdiction.
This press release is only being made available to and directed at persons entitled to ordinary shares in Philips and is not being made, and has not been approved, by an authorized person for the purposes of section 21 of the UK Financial Services and Market Act 2000. No sales or offers to sell ordinary shares under the share repurchase program may be made from or in the United States.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 126,000 employees in more than 60 countries worldwide. With sales of EUR 30.4 billion in 2005, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
- Contact Information
- Arent Jan Hesselink
- Philips Corporate Comunications
- Royal Philips Electronics
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