Board’s new dividend proposal SEK 3.25 per share

07 April 2006 08:30

In conjunction with the year-end report on 17 February, the Board of Directors proposed a dividend of SEK 1.15 per share, corresponding to a dividend payment of 32 per cent. Based on Mekonomen’s financial position, the demands that the nature, scope and risks of the operations place on the amount of shareholders’ equity in the Parent Company and the Group, and the company’s established strategy, cash flow and investment requirements, the Board considers that there is potential for an extraordinary dividend of SEK 2.10 per share in addition to the ordinary dividend. The Board’s proposal to the Annual General Meeting is thus a dividend totalling SEK 3.25 per share, which corresponds to a total of SEK 100,323,672. The Parent company’s available profits for distribution amount to SEK 101,023,477. It is proposed that the record date for the dividend remain unchanged at 15 May 2006. The Board also proposes that the Meeting resolve in favour of a reduction in the company’s statutory reserve by SEK 340,000,000 from SEK 343,340,977 to SEK 3,340,977. The amount of the reduction shall be allocated to a reserve to be used in accordance with decision by the Meeting. Mekonomen’s Annual General Meeting will be held on 10 May 2006, at 4:00 p.m., in Salénhuset, Aulan hall, Norrlandsgatan 15, Stockholm. The complete notification of the Annual General Meeting is attached to this press release. For further information, please contact: Christer Zetterberg, Chairman, Tel: +46 (0)8-407 35 01 Mekonomen is a car spare parts chain with an in-house wholesaling business and nationwide network of wholly owned and co-operating stores in Sweden, Norway and Denmark. The Group’s turnover primarily comprises sales to workshops and motorists through wholly owned stores and wholesaling to co-operating stores. See also mekonomen.se