Denmark: Royal Unibrew is launching Share Buy-back under ”Safe Harbour”
Royal Unibrew is launching a Share-Buy-back Programme up to DKK 100 million
As announced in the Company's H1 Report 2005 published on 24 August 2005, the Supervisory Board has decided to buy back shares for treasury within the limit of 10% authorised at the General Meeting.
In light of the Company's strong cash flow and current capital structure, the Supervisory Board of Royal Unibrew has decided to launch this Share Buy-back Programme.
It is the intention in the coming years to adjust the capital structure of Royal Unibrew with a view to additional optimisation of the Company's weighted average cost of capital (WACC) to increase the return to Group shareholders through utilisation of additional debt financing.
It is the target that the Group's interest-bearing debt proportionately to EBITDA be increased to approximately three times by the end of 2007 (compared to 1.4 times in the Annual Report for 2004), ie up until the end of the period covered by the Company's current MACH II strategy.
It is considered possible, within the limits defined by this target, to realise the Group's growth targets under the MACH II strategy. The adjustment of capital structure is expected to be realised through acquisitions in line with the MACH II strategy and - to the extent of any capacity being left - through repurchase of shares for treasury.
Royal Unibrew wishes to acquire up to 190,000 shares for treasury, however maximised to a value of DKK 100 million, under a structured buy-back programme pursuant to the provisions of the EU Commission Regulation No 2273/2003 of 22 December 2003, the so-called ”Safe Harbour” method (”the Share Buy-back Programme”), which protects the Supervisory and Executive Boards of a listed company against violation of the insider trading legislation in connection with share buy-backs. The Share Buy-back Programme will be effective in the period from 19 September 2005 up to and including 20 January 2006.
Royal Unibrew currently holds 112,132 treasury shares, equal to 1.76% of the Company's share capital.
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