Updated financial leverage target and shareholder remuneration framework for Tele2, post the proposed merger with Com Hem
The Board of Directors of Tele2 has, in agreement with the Board of Directors of Com Hem, decided to update the preliminary financial framework announced in January.
The new financial leverage target and shareholder remuneration framework are as follows:
- Enlarged Tele2 will seek to operate within a net debt/EBITDA range of between 2.5-3.0x and maintain investment grade credit metrics
- Enlarged Tele2’s policy will aim to maintain target leverage by distributing capital to shareholders through:
- An ordinary dividend of at least 80 percent of equity free cash flow; and
- Extraordinary dividends and/or share repurchases, based on remaining equity free cash flow, proceeds from asset sales and re-leveraging of EBITDA growth
Based on this policy, Enlarged Tele2 is expected to distribute in excess of 100 percent of equity free cash flow to shareholders, through a combination of dividends and share repurchases.
Below table depicts the ordinary cash dividends and other cash distributions to shareholders paid per ordinary share by Tele2 since fiscal year 2009. All amounts in SEK.
|Decision at Annual General Meeting||2018||2017||2016||2015||2014||2013|
|Other distribution to shareholders||10.00*||28.00**|
|Record date||23 May 2018||11 May 2017||26 May 2016||21 May 2015||15 May 2014||16 May 2013/
11 June 2013
* Extra ordinary dividend with the same record date as for the ordinary dividend.
** Distribution to shareholders via a share redemption program of SEK 12.5 billion, which was equivalent to a distribution of SEK 28 per existing share of Class A and B in Tele2. The record date for the share redemption program was 11 June 2013.