AstraZeneca – AGM 29 April 2020
Items 2, 10-12: Dividend, capital increases without preemptive rights and share buyback
AstraZenecans distribution policy is unsustainable and item of serious concern. For many years in a row, the dividend has been covered neither by EPS nor by free cash flows. The debt has increased significantly. In 2019, AstraZeneca diluted shareholders by the non-preemptive placement of 3.5% of the capital at a 1.5% discount. The Companyns dividend amounts $3,592m compare to raised share proceeds of $3,525m. This cost at least $75m to the company and its shareholders. The discount totalled $53m and the transaction cost was $22m, all corresponding to 2.1% of share proceeds.
ECGS strongly believes that dividends should be paid out of the company's earnings. That any payout ratio above 100% should be temporary and justified by special circumstances. And to fund dividend the company should generate enough cash. We propose to oppose all these resolutions to oblige AstraZeneca to revise its dividend policy.
AstraZeneca is a holding company. Through its subsidiaries, Co. operates as a biopharmaceutical company engaged in discovering, developing, manufacturing and commercializing its pipeline of small molecule and biologic prescription medicines, including targeted business development through collaboration, in-licensing and acquisitions. Co. is focused on three main therapy areas: Oncology, Cardiovascular and Metabolic Diseases, and Respiratory. Co. is also selectively active in autoimmunity, infection and neuroscience. In addition, Co. works across small molecules, oligonucleotides and other drug platforms, as well as biologic medicines.
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