Press
release
Swatch Group: Closing of the existing share repurchase
program by June 30, 2005 and launch of a new program on the second trading
line on virt-x as from July 1, 2005
Biel/Bienne,
July 1, 2005 -
As already announced on the occasion of the publication of the 2004 business
results, Swatch Group launches a new share repurchase program on a second
trading line. The size of the new share repurchase program corresponds
to a market value of CHF250 million. The share repurchase will take place
on virt-x on separate trading lines (bearer shares and registered shares,
respectively), established solely for this purpose. These trading lines
have been opened on virt-x as of today, July 1, 2005. Swatch Group will
ensure that holders of bearer and holders of registered shares can tender
their shares on comparable terms to Swatch Group on the separate trading
lines. The shares will be repurchased after deduction of the Swiss federal
withholding tax. The intended use of the shares to be repurchased , will
be determined at a later date. Herewith, and without time limitation,
Swatch Group retains the full range of possibilities for the use of the
repurchased shares (e.g. capital reduction, acquisitions, equity-linked
transactions, employee participation or resale).
Completed program
Under the completed share repurchase program, which ran from May 14, 2004
to June 30, 2005, [449,500] bearer shares with a nominal value of CHF2.25
each, and [2,140,000] registered shares with a nominal value of CHF 0.45
each have been repurchased by Swatch Group. According to the capital reduction
decision by Swatch Group’s General Meeting held on May 18, 2005, the share
capital will be reduced and the repurchased shares cancelled following
the ordinary procedures.
Taxation
Aspects
The Swiss federal withholding tax will be applied to shares sold via the
second trading lines 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.
Swatch
Group Contacts Investors and Financial Analysts:
Edgar Geiser, CFO, and Thomas Dürr, Corporate Treasurer
Tel +41 32 343 68 11, fax +41 32 343 69 16
e-mail: investor.relations@swatchgroup.com
Media:
Béatrice Howald, Media Office
Tel +41 32 343 68 33, Fax +41 32 343 69 22
e-mail:
press@swatchgroup.com
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