This high reinvestment rate, which attests to shareholders’ confidence in the Group’s strategy and long-term growth outlook, allows Saint-Gobain to strenghten its equity by €315 million. A total of 13.8 million new shares will be issued, equivalent to 2.8% of outstanding shares.
The new shares will be issued and delivered on July 2. They will carry rights to the 2009 dividend and will rank pari passu to existing shares from the issue date. An application will be made for the new shares to be listed on NYSE Euronext Paris on July 2.
The share issue will have the effect of increasing Compagnie de Saint-Gobain’s share capital as of June 29 to €2,052 million, represented by 512.9 million ordinary shares with a par value of €4 each, all fully paid and all in the same class. Cash dividends will also be paid on July 2, for a total of €171.3 million.
During the Annual General Meeting of June 4, Saint-Gobain shareholders approved payment of a 2008 dividend of €1 per share and the option to receive the dividend in cash or in Saint-Gobain shares issued at a price of €22.83 per share. Shareholders that chose the stock dividend alternative were required to notify the Company between June 10 and June 24.