Germany's Largest Share Buy-back Launched
8 March 2000
Germany's Largest Share Buy-back Launched
LUDWIGSHAFEN, Germany--March 8, 2000--and pay 1999 dividend of (e) 1.13
BASF Aktiengesellschaft today started the largest share buy-back ever seen in Germany, announcing that it would buy back shares up to a total value of (e) 2 billion. At the current market price of (e) 44.30 (March 7, 2000), this corresponds to about seven percent of BASF's market capitalization.
The share buyback program will reduce stockholders' equity and increase the company's earnings per share. By lowering stockholders' equity, BASF will also reduce its capital costs.
BASF Aktiengesellschaft has a share capital of about (e) 1.59 billion divided into about 621 million shares.
BASF shares performed well in 1999, rising 64 percent and outperforming Germany's DAX index of the country's 30 largest capitalized companies, which rose 39 percent.
Dividend proposal of (e) 1.13
At the Annual Meeting to be held on April 27, 2000, the Board of Executive Directors and Supervisory Board of BASF Aktiengesellschaft will propose paying a dividend of (e) 1.13 per share entitled to a dividend from BASF Aktiengesellschaft's net income for 1999. The dividend in 1998 was (e) 1.12. In addition to the dividend, shareholders subject to German income or corporation tax will receive a tax credit of (e) 0.48, increasing their dividend payment to (e) 1.61. This means that total dividends of (e) 702 million will be paid on outstanding capital stock at the end of 1999 compared with (e) 693 million in 1998. A total of (e) 304 million will be allocated to retained earnings of BASF Aktiengesellschaft compared with (e) 381 million in 1998.
As the proposed dividend shows, BASF's goal is to continue paying an appropriate share of earnings to its shareholders.
BASF will report in detail on its 1999 results and the outlook for 2000 at its news conference scheduled for March 15, 2000.
For 2000, BASF wants to increase sales and earnings. The company has completed several measures to benefit from the more favorable economic climate.
BASF is a return-focused global company generating long-term growth and profitability from its activities in chemicals, health and nutrition, and oil and gas. The company's product range includes high-value chemicals, plastics, dyestuffs, dispersions, automobile and industrial coatings, crop protection agents, pharmaceuticals, fine chemicals, crude oil and natural gas. BASF's approach to integration, known in German as Verbund, is one of the company's particular strengths and provides a unique competitive advantage. With sales in 1998 of (e) 27.6 billion (about $29 billion) and a workforce of 105,000 employees, BASF is one of the world's top chemical companies. BASF's Internet address is www.basf.com.
(e) = Euro dollar