GN Store Nord discontinues M&A opportunity following due diligence - initiation of new share buyback program


Copenhagen, 2014-11-05 14:06 CET (GLOBE NEWSWIRE) -- In the constant pursuit to deliver significant shareholder value, GN Store Nord has, in parallel with the execution of its strategy for 2014 – 2016, evaluated a significant M&A opportunity that had the potential to transform GN. As GN continues to focus on maximizing shareholder value, the M&A project has now been discontinued.

Following extensive due diligence and analysis with the help of outside consultants, one-off costs amounting to around DKK 95 million will be booked under Other in the financial statements for Q3 2014. A material part of the costs related to the project is not tax deductible.

GN will continue executing on its strategy for 2014 – 2016 and focus on innovation and growth to leverage its technological leadership position, leading product offering and unique R&D competencies.

 

Change of guidance

GN Store Nord’s 2014 full-year guidance for EBITA in Other is consequently changed from “around DKK (60) million” to “around DKK (155) million” and the guidance for the effective tax rate is changed from “27 – 28%” to “around 29%”.

 

Initiation of new share buyback program

Based on the continued solid business performance and GN’s capital structure policy, GN announces a new share buyback program of DKK 500 million to be initiated on November 6, 2014 and concluded no later than March 19, 2015.

 

For further information please contact:

Michael Bjergby

VP – IR, Communications, CSR & Treasury

GN Store Nord A/S

Tel: +45 45 75 02 92


Attachments

Announcement 43 - Change of guidance GN Store Nord.pdf