STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
Eniro AB (publ)(STO:ENRO) and the company’s former CEO Johan Lindgren have entered into a settlement agreement in which Lindgren waives all claims against the company regarding termination salary and severance pay. The company in turn waives its claims against Lindgren. The settlement agreement is conditional on the approval of the General Meeting. If the settlement agreement is approved, a positive impact on earnings of approx. MSEK 14 is expected.
Eniro’s former CEO Johan Lindgren has in an arbitration proceeding against the company claimed termination salary and severance pay in the total amount of almost MSEK 13, which would result in a cost of approx. MSEK 16.9, including social security contributions, for Eniro, plus interest. Eniro has submitted a counterclaim against Johan Lindgren in the same arbitration proceeding for damages of approx. MSEK 7.6. Pursuant to the settlement agreement, Lindgren waives all claims regarding termination salary and severance pay and Eniro waives its counterclaim for damages. Pursuant to the settlement agreement, Eniro shall pay an amount of MSEK 3.8 to Lindgren for part of his costs in the arbitration proceeding as well as pay social security contributions on such amount. As a result thereof, the arbitration proceeding will be closed. If the settlement agreement is approved by the General Meeting, Eniro will be able to reverse the reserve of approx. MSEK 19.3, which is currently expected to give a positive impact on earnings of approx. MSEK 14.
The settlement agreement is conditional on the approval of the General Meeting. The company has contacted some of its larger shareholders, which are in favour of the settlement agreement. If the General Meeting does not approve the settlement agreement, the arbitration proceeding will be resumed.
”The settlement agreement with Lindgren is better for Eniro’s shareholders than the alternative to continue with the arbitration proceeding”, says the Chairman of the Board of Directors Lars-Johan Jarnheimer. “We do not have to pay any termination salary or severance pay. The company can now focus on the development of its operations instead of on litigation against its former CEO”, Jarnheimer adds.
- Eniro will hold an Extraordinary General Meeting on Friday, 18 December 2015 at 9.00 a.m. (CET) at Summit Solna Business Park, Svetsarvägen 6, Solna, Sweden (see separate notice).
This information is such that Eniro AB (publ) is required to disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on November 25, 2015 at 8.00 am (CET).
Eniro is a search company that aggregates, filters and organizes local information. Our growth is driven by users’ increasing mobility and multiscreen behavior, where we are at the forefront with modern technical solutions. For more than 100 years Eniro has helped people find local information and companies find customers. Today it is a multiscreen solution – our users search for information using their smart phones, tablets and desktops. Mobile advertising is today the fastest growing part of Eniro’s business. Eniro is the local search engine. A smart shortcut to what you need, no matter where you are or where you are going.
Eniro is one of the largest search companies in the Nordic region and Poland. The company has approximately 2,000 employees and has been listed on NASDAQ Stockholm since 2000. During 2014, Eniro revenues amounted to SEK 3,002m and EBITDA was SEK 631m. Approximately 88 percent of Eniro advertising revenues come from multiscreen channels. The company’s headquarters are located in Stockholm, Sweden. More on Eniro at www.enirogroup.com.
Eniro – Discover local. Search local.
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