Home » News » Business » Philips announces EUR 1.63 Billion share repurchase program
Royal Philips Electronics announced that it will start a EUR 1,633 million share repurchase program for capital reduction purposes over a second trading line on Euronext Amsterdam to complete the return of a total of EUR 4 billion to its shareholders. The program over a second trading line will start January 22, 2007, and is expected to be completed before the end of 2007. The second trading line will enable Philips to buy back shares from holders who are tax-exempt or are able to achieve tax compensation. The maximum number of shares that will be repurchased under this program depends on the development in the share price during the course of the program.
Mechanics of ‘Second Trading Line’
This repurchase program will take place over a so-called ‘second trading line’ which has been established on Euronext Amsterdam for this purpose and for which a separate security code will be used (ISIN NL0000009322). On this trading line, shares will be purchased exclusively by Philips. Trades on the second trading line will take the form of regular ‘off exchange’ transactions of at least 10,000 shares and will be settled net of 15% dividend withholding tax. Furthermore, trades on the second trading line shall include a small transaction cost reimbursement to take into account the administrative and financing costs incurred by investors e.g. to claim relief from Dutch dividend withholding tax.
Regular trading in Philips’ ordinary shares on Euronext Amsterdam and on the New York Stock Exchange will continue as normal. Philips is at no time obliged to engage in transactions to buy its own ordinary shares via the second trading line, and will act as buyer depending on market conditions and the prevailing ordinary share price.