Norsk Hydro ASA: Buyback of Shares
29 October 2004 - 9:11PM
PR Newswire (US)
Norsk Hydro ASA: Buyback of Shares OSLO, Norway, Oct. 29
/PRNewswire-FirstCall/ -- The Board of Norsk Hydro ASA has decided
to call for an extraordinary General Meeting on December 1, 2004 to
ask the shareholders for authorization to buy back shares. "In
periods when earnings are high, we consider share buyback as a
supplement to ordinary dividends. The strong financial performance
has resulted in a very solid financial position for Hydro which, in
addition to financing the company's considerable investment
program, also justifies the proposed buyback program. It is a
pleasure to be able to return a larger part of the value creation
to our shareholders. Buyback of shares benefits the shareholders by
means of increasing the relative ownership for the remaining
shares, and contributes to a more adequate capital structure for
the company," said Executive Vice President and CFO, John Ottestad.
If approved, the Board will be authorized to purchase up to
5,617,621 of the company's own shares in the market, over the 18
months period beginning December 1, 2004. Each share may be
purchased at prices ranging from NOK 200 to NOK 700. The Board will
at a subsequent General Meeting propose to cancel the purchased
shares, with a corresponding capital reduction. Based on an
agreement with the Norwegian State, the Board will also propose
cancellation of a proportional part of the State's shares. The
State's ownership share of 43.82 percent will therefore remain
unchanged. The compensation for the State's shares will be
determined by the average price paid in the market for the rest of
the shares, plus an interest based on NIBOR + 1 percent, calculated
from the dates of acquisition of the corresponding shares. In
total, up to 10 million shares may be cancelled, equivalent to
around 4 percent of the outstanding shares. The decision to cancel
shares must be made with a majority vote of 2/3 of the shares
represented at the General Meeting. The previous buyback program,
limited to 5 million shares, was approved by Hydro's Annual General
Meeting in May 2004. Hydro has completed the first part of program
by purchasing 2,808,810 shares in the market from June 8 to
September 29, 2004 at an average price of NOK 440.86 per share.
These shares will be proposed cancelled at the extraordinary
General Meeting on December 1. The Norwegian State will offer
2,191,190 shares for redemption and cancellation at the same
General Meeting. The formal cancellation of the shares and the
settlement for the State's shares is expected to take place two
months later due to the statutory creditor notice period. Certain
statements in this press release are or may constitute "forward-
looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Statements that are not in the
nature of historical facts may be deemed to be forward-looking
statements and may contain identifying words such as "believes",
"anticipates", "plans", "expects" and similar expressions. These
forward looking statements are based on Hydro's current
expectations, assumptions, estimates and projections about the
company and the industries in which it engages in business. All
forward-looking statements involve risks and uncertainties. For a
detailed description of factors that could cause Hydro's actual
results to differ materially from those expressed in or implied by
such statements, please refer to its annual report on Form 20-F for
the year-ended December 31, 2003 and subsequent filings on Form 6-K
with the U.S. Securities and Exchange Commission. With respect to
each non- GAAP financial measure Hydro uses in connection with its
financial reporting and other public communications, Hydro provides
a presentation of what Hydro believes to be the most directly
comparable GAAP financial measure and a reconciliation between the
non-GAAP and GAAP measures. This information can be found in
Hydro's earnings press releases, quarterly reports and other
written communications, all of which have been posted to Hydro's
website (http://www.hydro.com/). Contact Idar Eikrem Kjetil Bakken
Telephone (+47) 22 53 32 73 +47 22 53 23 13 Cellular (+47) 95 02 83
63 +47 91 889 889 E-mail Norsk Hydro ASA Drammensveien 264 N-0240
Oslo Norway Telephone: (+47) 22 53 81 00 Fax: (+47) 22 53 27 25
http://www.hydro.com/ DATASOURCE: Norsk Hydro ASA CONTACT: Idar
Eikrem, +47-22-53-32-73, or Cell, +47-95-02-83-63, , or Kjetil
Bakken, +47-22-53-23-13, or Cell, +47-91-889-889, Web site:
http://www.hydro.com/
Copyright