Holmen proposal
Ordinary dividend of SEK 9 per share and extra dividend of SEK 60 per
share
On Wednesday, Holmen's Board decided to recommend to the AGM scheduled for
March 20, 2001 that an ordinary dividend of SEK 9 per share, and an extra
dividend of SEK 60 per share, be paid for the 2000 financial year.
The ordinary dividend will absorb MSEK 720 and the extra dividend MSEK
4,798.
Provided the AGM resolves in favour of the Board's proposal, Holmen's
debt/equity ratio is expected to be approximately 0.35 after payment of
the total dividend of some MSEK 5,500. Holmen's long-term target for its
capital structure is to have a debt/equity ratio of between 0.5 and 0.7.
Holmen's target for its ordinary dividend each year is that it should
correspond to some 5-7 per cent of the company's equity. A dividend of SEK
11 per share was paid for the 1999 financial year. The proposed dividend
of SEK 9 per share corresponds to some 6 per cent of equity as calculated
after the proposed extra dividend, and represents an adjustment to the
changed capital structure.
The Board has also decided to recommend to the AGM that the 8,885,826
Holmen Series "B" shares that were repurchased during this year be
withdrawn, as a result of which the share capital will be reduced by MSEK
444.
Furthermore, the Board has decided to propose to the AGM that the Board be
authorised to repurchase up to 10 per cent of the company's shares. This
corresponds to 7,997,245 shares after the above withdrawal.
For further information, please contact Per Ericson, President and CEO of
Holmen (+46 8 666 21 00).