Gränges withdraws the dividend proposal
The outbreak of the coronavirus, Covid-19, and the extraordinary measures and recommendations that authorities and governments have taken to reduce the spread of infection, have significantly affected market conditions and operating conditions on the markets where Gränges operates.
As a result, Gränges’ Board of Directors has decided to withdraw the previously communicated proposal to the Annual General Meeting (AGM) 2020 for a dividend of SEK 3.40 per share. The Board’s decision has been made in the light of the prevailing global climate, due to the outbreak of Covid-19 and its effects on the world and markets, and the risk of the outbreak’s potential financial impact on Gränges’ operations and results. Withdrawing the dividend proposal also allows for the Board to evaluate and potentially reduce the size of the previously announced rights issue, which aims to finance the acquisition of Aluminium Konin and future growth investments.
“Due to the prevailing global climate, it is the Board’s opinion that this is a sound action to take at this point to ensure that the company continues to be well-positioned for the future,” says Anders G. Carlberg, Chairman of the Board of Directors of Gränges AB.