MALMÖ, Sweden--(BUSINESS WIRE)--Regulatory News:
Oriflame Cosmetics S.A. (STO:ORISDB) today held its Extraordinary General Meeting (“EGM”) in Luxembourg.
The EGM approved the Board of Director’s proposal to implement a share buyback programme in accordance with the proposal put forward in the EGM notice, allowing for the purchase of up to 10 percent of the company’s shares, corresponding to a total of 5,712,113 shares, during a maximum period from 20 December 2012 until the 2014 Annual General Meeting (“AGM”) to be held on 19 May 2014. The EGM furthermore authorised the Board of Directors, with the option to delegate such power to the management of the Company and/or give mandate to financial institutions where relevant, to implement the share buyback programme on one or more occasions.
As previously announced, the purpose of the share buyback programme is to optimise the capital structure, which is enabled by Oriflame’s strong financial position and good cash flow generation from operations. The share buyback programme is to be carried out in accordance with the EU Safe Harbour regulation (Regulation No. 2273/2003 of the Commission of December 22, 2003), and the acquired shares shall be cancelled. Further, the company intends to execute the share purchases in such a way that Oriflame’s ability to pay out ordinary dividend is maintained.
The acquisition price per share acquired under the mandate shall not exceed the higher of the price of the last independent trade and the highest current independent bid on the NASDAQ OMX Nordic Exchange, (and shall not be lower than the par value of the share). The number of shares acquired under the mandate may during a single trading day not exceed 25 percent of the average daily volume of shares on the NASDAQ OMX Nordic Exchange. The average volume of shares is based on the average daily volume traded in the twenty stock exchange trading days preceding the date of the purchase.
The Board of Directors have resolved that the share buyback programme will be carried out on behalf and account of Oriflame Cosmetics S.A. on the open market through a financial institution commissioned by the Company in different instalments of which the first one is expected to start within the next weeks. Further information regarding the execution of the share buyback mandate will be announced prior to the initialisation of share buybacks under the mandate.
Founded in 1967 by two brothers and their friend, Oriflame is now an international beauty company selling direct in more than 60 countries worldwide. Its wide portfolio of Swedish, nature-inspired, innovative beauty products are marketed through a sales force of approximately 3 million independent Oriflame Consultants, who together create annual sales of around €1.5 billion. Oriflame offers the leading business opportunity for people who want to start making money on day one and work towards fulfilling their personal dreams and ambitions through its unique business opportunity concept – Make Money Today and Fulfil Your Dreams Tomorrow™. Respect for people and nature underlies the company’s operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation. Oriflame Cosmetics is listed on the NASDAQ OMX Nordic Exchange.
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