FRIGOGLASS S.A.I.C.
Proposed Leveraged Recapitalisation and Payment of Ιnterim Dividend.
Frigoglass S.A.I.C., the world's leading manufacturer and solutions provider of Ice-Cold Merchandisers (ICMs), with operations in 18 countries across four continents, today announces a proposal for a leveraged recapitalisation, which will result in a capital return of Euro 36,180,549 to its shareholders.
The leveraged recapitalisation is proposed to be effected through a combination of an increase and subsequent decrease of the company's share capital, as follows:
a. The Company's share capital shall be first increased by an amount of Euro 8,040,122 through the capitalization of a portion of the account "Balance from the issuance of shares above par value" by increasing the nominal value of each share of the Company by Euro 0,20 per share. Thus, the nominal value of each share will increase from Euro 1,00 to Euro 1,20.
b. Subsequently, the Company's share capital shall be decreased by an amount of Euro 36,180,549 through a reduction of the nominal value of the shares of the Company by an amount of Euro 0,90 per share, i.e. the nominal value of the shares has been decreased from Euro 1,20 to Euro 0,30 per share, and return of an equal amount of capital to the shareholders in cash.
An EGM to approve the above has been called to convene on 5th September 2008 at 10:00 am at the Company's offices.
Separately, and following the above return of capital, the Board of Directors is considering paying an interim dividend of Euro 0,60 per share.
The leveraged recapitalisation and interim dividend payment are recommended for the following reasons:
- Frigoglass' continued strong prospects and expectations for earnings growth and strong cash flow generation
- Current balance sheet capacity
- Maintenance of strong debt ratios post restructuring
- Potential to increase the efficiency of the company?s balance sheet
- Operational activities and strategic goals would be entirely unaffected
Commenting, Petros Diamantides, Managing Director of Frigoglass: "Today's announcement follows a comprehensive review of our capital structure requirements given our long term plans and forecasts.
The Board is extremely satisfied that the expected future earnings and cash flows of Frigoglass can comfortably sustain a more efficient capital structure, and has thus decided to return cash to shareholders.
In addition, sufficient financial flexibility will remain after this recapitalisation and payment of interim dividend, to enable Frigoglass to pursue further additional selective acquisition opportunities in line with its strategic priorities."
The leveraged recapitalisation is proposed to be effected through a combination of an increase and subsequent decrease of the company's share capital, as follows:
a. The Company's share capital shall be first increased by an amount of Euro 8,040,122 through the capitalization of a portion of the account "Balance from the issuance of shares above par value" by increasing the nominal value of each share of the Company by Euro 0,20 per share. Thus, the nominal value of each share will increase from Euro 1,00 to Euro 1,20.
b. Subsequently, the Company's share capital shall be decreased by an amount of Euro 36,180,549 through a reduction of the nominal value of the shares of the Company by an amount of Euro 0,90 per share, i.e. the nominal value of the shares has been decreased from Euro 1,20 to Euro 0,30 per share, and return of an equal amount of capital to the shareholders in cash.
An EGM to approve the above has been called to convene on 5th September 2008 at 10:00 am at the Company's offices.
Separately, and following the above return of capital, the Board of Directors is considering paying an interim dividend of Euro 0,60 per share.
The leveraged recapitalisation and interim dividend payment are recommended for the following reasons:
- Frigoglass' continued strong prospects and expectations for earnings growth and strong cash flow generation
- Current balance sheet capacity
- Maintenance of strong debt ratios post restructuring
- Potential to increase the efficiency of the company?s balance sheet
- Operational activities and strategic goals would be entirely unaffected
Commenting, Petros Diamantides, Managing Director of Frigoglass: "Today's announcement follows a comprehensive review of our capital structure requirements given our long term plans and forecasts.
The Board is extremely satisfied that the expected future earnings and cash flows of Frigoglass can comfortably sustain a more efficient capital structure, and has thus decided to return cash to shareholders.
In addition, sufficient financial flexibility will remain after this recapitalisation and payment of interim dividend, to enable Frigoglass to pursue further additional selective acquisition opportunities in line with its strategic priorities."