Philips updates the market on second trading line repurchase program
Amsterdam, The Netherlands – Following the announcement of a EUR 1.63 billion share repurchase program over a second trading line on Euronext Amsterdam on January 9, 2007, Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced it has recently received further guidance from the fiscal authorities in the Netherlands on certain criteria under which investors will be able to participate in the program. This further guidance follows the confirmation of the validity of the program obtained from the fiscal authorities before it was launched.
Philips announced on January 9 that it would start a 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 started January 22, and Philips aims to have it completed before the end of 2007. The second trading line enables Philips to buy back shares from holders who are tax-exempt or are able to achieve tax compensation.
The guidance that was obtained stipulates that eligible investors who had a Philips share participation on January 22, 2007 and are willing to sell their stake (wholly or partially) on the second trading line will get full refund or compensation for the Dividend Withholding Tax of 15%. Investors who had a participation in Philips upon the start of the second trading line program can build up their Philips stake again via the ordinary trading line. It is expected that more information about this possibility will be published by the fiscal authorities via the usual channels shortly.
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 visit this link.
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