DSM strategy Vision 2010 - Building on Strengths: well on track -
New initiative: EUR 750 million Share buyback
Heerlen,NL,27-Sep-2006 18:15 CET
A year ago DSM published its multi-year strategy:
Vision 2010 – Building on Strengths.
During the annual analysts conference on 28 and 29 September 2006 DSM had
given an update on the progress realized in the first year and, in addition,
launch the following new initiative:
Share buyback Program
Vision 2010 described the parameters regarding DSM’s balance sheet strategy.
As a main building block to realize the desired balance sheet structure DSM
has decided to launch a share buyback program with a total value of EUR 750
million. Such a program will increase DSM’s gearing (net debt/ total capital)
by approximately 10 percentage points, taking it to a level of around 20%. It
will enable the repurchase of approximately 20 to 25 million ordinary shares,
(assuming a share price in between EUR 30 and EUR 35), which equals
approximately 10 to 13% of the total number of ordinary shares in issue.
Consequently, the direct EPS enhancing effect for ordinary shareholders will
be around 10%.
For tax reasons, the execution of this share buyback program will be split
over 2006 and 2007. The first phase of this share buyback program will start
on 28 September, 2006 and will run until 31 December, 2006. DSM has signed a
Discretionary Management Agreement with the bank that will execute this year’s
share buybacks. The number of shares to be repurchased in this first phase
will not exceed 6.7 million shares. The program will be completed in 2007. The
repurchase price will be based on the daily VWAP (Value Weighted Average
Price). Daily volumes to be repurchased will be around 10% of the daily trade
volume. In accordance with the present regulations DSM will regularly inform
the market via press releases about the progress made in the execution of this
share buyback program.
Full press release.....
