KappAhl proposes a share split and automatic share redemption
The Board of KappAhl Holding AB (publ) ("KappAhl") has decided to propose to the Annual General Meeting on 17 December 2007 to make a decision about a share split and reduction of the share capital through an automatic redemption procedure. Through the redemption procedure a total of SEK 825 million will be transferred to KappAhl's shareholders.
The proposal means that each KappAhl share will be split into two shares, of which one will be a redemption share in the VPC system. The redemption share will then automatically be redeemed against a cash redemption payment of SEK 11. The share split and redemption procedure will take place automatically without the shareholder needing to take any action. The cash redemption payment is expected to take place at the end of February 2008.
In order to carry out the redemption procedure the Board also proposes that the provision in the Articles of Association concerning the maximum and minimum share capital be changed and that a bonus issue be carried out without issuing any new shares.
The proposal for an automatic redemption procedure replaces the board's previous proposal for a cash dividend of SEK 5 per share.
Further information about the proposal will be included in the notice to attend the Annual General Meeting, which is expected to be published on 19 November 2007, and in the information brochure regarding the redemption procedure, which is expected to be published on 3 December 2007.
For further information, please contact:
Christian W. Jansson, President and CEO Tel. +46 70 995 02 01
Håkan Westin, CFO Tel. +46 70 471 56 64
KappAhl is a leading Nordic fashion chain with approximately 3 800 co-workers and close to 300 stores in Sweden, Norway, Finland and Poland. We design, market and sell value-for-money fashion and focus in particular on women 30-50 years of age with family. KappAhl's head office and distribution centre are located in Mölndal, just outside Gothenburg. During the financial year 2006/2007, KappAhl had sales of SEK 4.5 billion, with an operating profit of SEK 618 million. KappAhl shares are listed on the OMX Nordic Exchange Stockholm. Further information about the company is available on www.kappahl.com and financial information is available on www.kappahl.com/ir.