2009 Capital return
On September 17th, 2009 the Board of Directors of Coca-Cola Hellenic resolved for a recapitalisation which will result in a capital return of €1.50 per share to its shareholders. The recapitalisation will be financed through a combination of accumulated cash and new debt and is subject to shareholder and regulatory approval.
Coca-Cola Hellenic’s Board of Directors believes the proposed recapitalisation is appropriate for the following reasons:
- The long-term potential of Coca-Cola Hellenic’s business
- The positive view of the Company’s medium-term cash flow generation
- The improvement in the efficiency of the Company’s balance sheet
- The potential to reduce the Group’s WACC by improving the efficiency of the Group’s capital structure
- The continuing strength of the Company’s key financial ratios will leave Coca-Cola Hellenic with strong public credit ratings also after the recapitalisation
- The operational activities and strategic goals of the Company will remain essentially unaffected
- Favourable conditions in the debt capital markets
- The capital return provides an immediate cash benefit to shareholders. The Company intends to suspend its share buy-back programme for the time being.
Doros Constantinou, Chief Executive Officer of Coca-Cola Hellenic, commented, “Coca-Cola Hellenic has a proven track-record of seeking ways to maximise returns for shareholders. Given the Company’s strong cash generation and positive view of its free cash flow over the medium-term, a capital return is the most appropriate way to return cash to shareholders in the current environment. In addition, this transaction will lower the Company’s Weighted Average Cost of Capital (WACC) and increase the efficiency of our capital structure, whilst maintaining sufficient financial flexibility to pursue attractive growth opportunities.”
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