Philips Announces Exchange Ratio for Upcoming Dividend
In a recent announcement, Royal Philips (NYSE: PHG, AEX: PHIA) has detailed the exchange ratio for its dividend for the fiscal year of 2024. This ratio stands at 1 new common share for every 23.6353 existing common shares. The decision is anchored on the volume weighted average price on Euronext Amsterdam, calculated on specific dates in early June.
Dividend Calculations and Implications
The exchange ratio was derived on the average price of EUR 20.0600, aiming to ensure that the gross dividend paid in shares approximates EUR 0.85. Consequently, Philips plans to issue a total of 22,980,748 new common shares to fulfill this dividend obligation. This strategic move is designed to maintain shareholder value while also considering the company's long-term financial health.
Shareholder Options for Dividend
Shareholders have been presented with options regarding the dividend. They can choose to receive the dividend in newly issued shares or, under certain conditions, opt for a cash payment. The results show that 41.4% of shareholders opted for cash—a figure falling below the adopted threshold of 50% during the recent General Meeting of Shareholders. This means that the remaining dividends will be processed according to their respective elections.
Distribution Timeline
The delivery of newly issued common shares is scheduled for June 6, 2025. If necessary, the settlement of any fractional shares will be made in cash, alongside any cash dividends that are to be distributed. Once these transactions are complete, Philips anticipates that their total issued share capital will swell to approximately EUR 192,584,026, accounting for 962,920,132 common shares.
Contact Information for Inquiries
For any further information regarding this announcement, interested parties can reach out to Michael Fuchs, part of the Philips Global External Relations team at +31 6 1486 9261 or via email at michael.fuchs@philips.com. Alternatively, Dorin Danu from Philips Investor Relations is available at +31 20 59 77055 or dorin.danu@philips.com.
About Royal Philips
Royal Philips is a frontrunner in health technology, dedicated to enhancing people’s health and well-being via groundbreaking innovations. The company leverages advanced technologies and deep insights from both consumers and healthcare providers to deliver tailored health solutions. Philips has carved out a strong reputation in areas like diagnostic imaging, ultrasound, and enterprise informatics, becoming a trusted partner for many healthcare institutions.
Company Performance and Presence
Recently, Philips reported a remarkable sales figure of EUR 18 billion, with a workforce comprising approximately 67,200 employees. The company’s reach extends to over 100 countries, signifying its global footprint. Philips continues to innovate, always aiming for a positive impact on health ecosystems worldwide, which keeps them in line with evolving health demands.
Frequently Asked Questions
What is the exchange ratio for the 2024 dividend?
The exchange ratio is set at 1 new common share for every 23.6353 existing common shares.
When will the new common shares be delivered?
The delivery of new common shares will occur on June 6, 2025.
What percentage of shareholders chose cash for the dividend?
41.4% of shareholders opted for a cash payment instead of shares.
How many new common shares will Philips issue?
Philips will issue a total of 22,980,748 new common shares.
Who can I contact for more information?
For inquiries, you can contact Michael Fuchs or Dorin Danu at Philips via their phone numbers or emails provided in the announcement.
