Talgo will remunerate its shareholders with a 53 million euros dividend - corporate
null Talgo will remunerate its shareholders with a 53 million euros dividend
09 Mar 2020
Talgo will remunerate its shareholders with a 53 million euros dividend
- The company remunerates its shareholders with a capital reduction of 7%
- The capital reduction, results from the Share Buy-back Programme launched in November 2018, contributes to shareholders remuneration through a significant increase in earnings per share (EPS)
Talgo SA, a leading company in the design, manufacture and maintenance of high-speed light trains has agreed to execute the reduction of its share capital through the redemption of 9,559,382 of treasury stock, representing 7% of the share capital. The value of this operation amounts to 53 million euros, thus reaching over 130% of the Net Profit achieved by Talgo in 2019.
With this capital reduction, the number of outstanding shares will decrease and generate a strong remuneration to shareholders through a significant increase of the earnings per share ratio (EPS). Once concluded, Talgo's share capital will be fixed at 38,227,968.02 euros, represented by 127,003,216 shares with a nominal value of 0.301 euros each. Talgo will carry out this amortization with a charge to freely available reserves.
Carlos de Palacio, President of Talgo, highlighted that this capital reduction "demonstrates Talgo's commitment to its shareholders" and stressed that "the redemption of treasury stock is one of the most remarkable and efficient methods to reward shareholders and offers an opportunity for shareholders to increase their participation in the company.”
Talgo announced the Share Buy-back Programme in November 2018 for an amount of 100 million euros, of which at the end of 2019 the Company already executed 63% of the total. In parallel to the aforementioned capital reduction, the company will continue to execute the Share Buy-back Programme towards completion.
Talgo S.A. is the leading company in the design, manufacture and maintenance of high-speed light trains with an industrial presence in nine countries: Spain, Germany, Denmark, Kazakhstan, Uzbekistan, Russia, Egypt, Saudi Arabia and the United States. The Company is recognized worldwide for its innovation capacity, unique distinctive technology and reliability. Talgo is train supplier in the high-speed project for the “Haramain” railway line between Mecca and Medina in Saudi Arabia and Renfe's main train supplier.
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