Metro International S.A. ("Metro"), the international newspaper group, has as
communicated earlier this autumn, decided to review the company's capital
structure. The company today announced a decision to maintain the current
capital structure, and not pursue any buybacks of the outstanding debentures due
to relatively limited savings from such a transaction. The decision allows Metro
to continue its strategy to invest in growth in Latin America, Russia and Asia,
and maintain flexibility and strength in operations in an uncertain financial
macro environment. The operations in Latin America and Russia reported
consolidated growth of 20% for the first three quarters of 2011, with operating
margins of 21%.
As both debentures and warrants are due in 2013, Metro has during the autumn
conducted an analysis on potential changes to the capital structure,
specifically whether an early buyback would be beneficial to the company and its
shareholders. Due to recent divestments, including Metro English Canada, the
company has some funds at hand it could use to buy back debentures. As a result
of this review, Metro has now decided not to proceed with any buybacks but to
keep the funds at hand. The total savings of a buyback would be limited to
EUR1.0 - 1.5 million after transaction costs, and therefore the company sees a
limited financial upside in completing such a transaction. The company will
however put aside SEK131 million for when the debentures expire in 2013.
For further information please visit www.metro.lu or contact:
Per Mikael Jensen President and CEO Tel: +46 8 120 570 00
Anders Kronborg CFO Tel: +44 79 1254 0800
***
ABOUT METRO INTERNATIONAL AND METRO
Metro is the largest international newspaper in the world. Metro is published in
over 100 major cities in 22 countries across Europe, North & South America and
Asia. Metro has a unique global reach - attracting a young, active, well-
educated Metropolitan audience of over 17 million daily readers.
Metro International S.A. shares are listed on Nasdaq OMX Stockholm through
Swedish Depository Receipts of series A and series B under the symbols MTROA and
MTROB.
[HUG#1571186]
Metro International to Maintain Existing Capital Structure
| Source: Metro International S.A.
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