Telia Company - EGM 02 December 2020
ECGS notes that as a result of the Covid-19 pandemic the EGM will be held as an electronic meeting only. Consequently, it will not be possible to attend the EGM in person.
In general, Telia Company is in compliance with the Swedish regulations relating to the organization and procedures of the Extraordinary General Meeting.
Under ITEM 6 the board of directors proposes to distribute an extraordinary dividend of SEK 0.65 per share. ECGS notes that Telia Company decided to reduce its initially intended dividend per share from SEK 2.45 to SEK 1.80 at the AGM 2020 in light of the Covid-19 pandemic. Taking the (proposed) extraordinary dividend per share of SEK 0.65 into consideration, the Company intends to reinstate its originally intended dividend of SEK 2.45 per share. As such it is proposed to increase the aggregate dividend per share from SEK 2.36 to SEK 2.45 (+4%). The (proposed) dividend is covered by FCF as well as in accordance with the Company¶s dividend policy. Alternatively, ECGS notes that Telia Company¶s results have been significantly impacted by the Covid-19 pandemic. Although total revenues (from continuing operations) still slightly increased (4%), operating income (-46%), total net income (-71%) and EPS (-72%) all substantially deteriorated up to and including Q3 2020. That having been said, ECGS also notes that Telia Company entered into agreements to divest its entire 47.1% holding in Turkcell Holding A.S. and its international Carrier business for total considerations of SEK 4.8 billion and SEK 9.45 billlion, respectively. Based on the Company¶s share capital as of Q3-end 2020, ECGS estimates the proposed extraordinary dividend to amount to nearly SEK 2.7 billion. As such the total amount to be distributed is covered by the proceeds generated from the above transactions (together adding up to SEK 14.25 billion). Accordingly, ECGS recommends to vote FOR.
Telia Company provides telecommunication services in the Nordic and Baltic countries, the markets of Eurasia, including Russia, Turkey and Spain. Co. has three business segments: Mobility Services, which comprises operations in Sweden, Finland, Norway, Denmark, Lithuania, Latvia, Estonia and Spain; Broadband Services, which comprises operations in Sweden, Finland, Denmark, Lithuania, Latvia (49.0%), Estonia and international carrier operations; and Eurasia, which comprises mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova and Nepal. The business area also includes Co.'s shareholdings in OAO MegaFon, Russia and Turkcell Iletisim Hizmetleri A.S., Turkey.
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