Press
release
Press
Release Repurchasing of own shares for the purpose of capital reduction
reopening of second trading line on virt-x as from May 14, 2004
Biel/Bienne,
May 11, 2004
As
already announced on the occasion of the publication of the 2003 business
results, Swatch Group continues with the share repurchase program launched
in November 2001, with the intention – for the time being – of repurchasing
own shares amounting to a total value that corresponds to a maximum of
2% of the share capital for the purpose of reducing the capital at a later
stage.
Upon termination of this share buyback, Swatch Group will have brought
to an end the share repurchase program started in 1998 and will have repurchased
a total of 10% of the share capital available at that time. The share
repurchase offer applies to both the bearer shares and the registered
shares of Swatch Group. Based on current share prices, the maximum buyback
volume corresponds to a market value of roughly CHF 200 million. A capital
reduction in the amount of the repurchased shares will be submitted by
the Board of Directors to the ordinary General Meeting of Shareholders
2005.
The share repurchase will take place on virt-x on a second trading line
for both the bearer and the registered shares, established solely for
this purpose. The second trading line on virt-x will be reopened on May
14, 2004.
Taxation
Aspects
The Swiss federal withholding tax will be applied to shares sold via the
second trading line at a rate of 35% on the difference between the repurchase
price of the registered or bearer shares and their nominal value. We recommend
that all shareholders interested in this program obtain appropriate individual
advice regarding tax implications.
Contacts :
Thomas
Dürr, Swatch Group Treasurer
Telephone +41 32 343 67 29 Fax +41 32 343 69 11
E-Mail: investor.relations@swatchgroup.com
Béatrice
Howald, Swatch Group Public Relations / Press Office
Telephone +41 32 343 68 33 Fax +41 32 343 69 22
E-Mail: press@swatchgroup.com
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