Oriflame Board proposes bonus with share redemption programme
05 May '06
2 min read
The Board of Directors of Oriflame Cosmetics S.A. ("Oriflame") has determined the exact terms and conditions regarding the proposed Redemption Offer, which is to be decided upon by the Extraordinary General Meeting ("EGM"), to be held directly after the Annual General Meeting ("AGM") on May 19, 2006.
As described in the notice to the AGM and EGM, sent out on April 13, 2006, the Board of Oriflame will, in addition to a dividend of € 0.90 per share, propose to the EGM an additional distribution of € 2.60 per share in the form of a share redemption programme with tradable redemption rights.
The background to the distribution is Oriflame's strong financial position and good cash flow generation from operations.
The Board proposes that every fifteenth share may be redeemed for € 39, paid in cash. For every share held in Oriflame on the record date, one redemption right will be received.
Fifteen redemption rights entitle the holder to redeem one share.
Assuming full acceptance of the Redemption Offer, approximately 3.97 million shares will be redeemed and approximately € 154.7 million will be distributed to the shareholders.
In summary, the timetable of the proposed Redemption Offer entails:
Last day to trade shares in Oriflame, including the right to receive redemption rights: May 19, 2006.
First day to trade shares in Oriflame, excluding the right to receive redemption rights: May 22, 2006.
Record date for receiving redemption rights: May 24, 2006