STOCKHOLM, July 19, 2021 /PRNewswire/ -- Following a review
of its capital structure, Electrolux today announces an adjusted
dividend policy of approximately 50% of annual income, a proposed
automatic share redemption of SEK 17
per share and an intention to resolve on share buybacks over
"Electrolux has during recent years generated strong cash flow
through improved profitability and high capital efficiency, despite
large investments in strengthening its product and service offering
as well as consumer interaction to boost organic growth", says
Staffan Bohman, Chairman of the
Board of Directors of AB Electrolux.
"The Board has conducted a thorough review of the Group's
strategic plans and current capital structure, where its first
prioritisation is to maintain a high level of capacity for value
creating organic investments and selective acquisitions. Since the
Group's financial position is today very strong, the Board has also
decided to distribute a larger part of the value created to our
Based on the review, the Board of Directors has decided to
adjust the dividend policy; from the current target of a dividend
corresponding to at least 30% of the annual income for the period,
to approximately 50% of the annual income.
In addition, the Board has decided to propose a cash
distribution to the shareholders through an automatic share
redemption procedure in the second half of 2021.
Furthermore, in addition to the ordinary dividends, the Board's
intention is to propose increased share buybacks with subsequent
share cancellations to the shareholders' meetings over several
years. As a first step, the Board intends to exercise the
authorization from the AGM 2021 to buy back shares. Details
regarding the size and duration of the intended buyback programs
will be communicated as and when decided.
"The Board's objective is to maintain a solid investment grade
rating, as defined by leading rating institutes, meaning that over
time the Group's net debt should not exceed two (2) times EBITDA.
The adjusted dividend policy, the proposed distribution through
share redemption and planned share buybacks are important parts in
achieving an optimal capital structure for the Group", concludes
Details on the proposed automatic share redemption
The Board has decided to propose to an Extraordinary General
Meeting (EGM) to resolve on a distribution to the shareholders of
SEK 17 per share, equal to a total of
approximately SEK 4.9bn, through an
automatic share redemption procedure, in which each share is split
into one ordinary share and one redemption share. The EGM is to be
held on August 27, 2021.
The proposed preliminary record day for the share redemption
split is October 5, 2021. Trading in
the redemption shares is estimated to take place on Nasdaq
Stockholm as from October 6, 2021 up
to October 22, 2021, after which the
redemption share will automatically be redeemed. Payment of the
redemption amount is estimated, if approved by the EGM, to be made
on or around October 28, 2021.
The notice convening the EGM including the complete terms of the
proposed automatic share redemption procedure will be published on
or around August 2, 2021. Electrolux
will also publish an information brochure about the share
redemption procedure on Electrolux website
www.electroluxgroup.com/egm2021 on or around August 2, 2021.
Share buyback program
As mentioned, the Board intends to propose share buybacks with
subsequent share cancellations to the shareholders' meetings over
several years to reduce Electrolux share capital.
As a first step, the Board intends to initiate a share buyback
program in connection with completion of the 2021 automatic share
redemption procedure, by utilizing the authorization from the AGM
2021 to repurchase own B shares up to a maximum of 10 percent of
all shares issued by the company. Electrolux currently holds
21,522,858 own B shares, corresponding to approximately 7.0 per
cent of the total number of shares in the company.
Electrolux Investor Relations department kindly refers any
questions regarding this announcement until after the Q2 2021
results have been published at approximately 08:00 CET on July
20. The Q2 2021 earnings call will be held on the same day
at 09:00 CET.
For further information, please contact:
Paul Palmstedt, Head of External Corporate Communications &
Affairs, +46 70 593 92 83
Sophie Arnius, Investor Relations, +46 70 590 80 72
This is information that AB Electrolux is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person
set out above, at 18.30 CET on July 19, 2021.
This information was brought to you by Cision
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