Veidekke ASA: Board of directors proposes extraordinary dividend of NOK 22.50 per share

11.11.2020 - 21:15

The proposed dividend comprises 50% of the proposed ordinary dividend, which was cancelled in March, and a dividend of NOK 20 following the sale of the property development operation. The proposal will be considered at an extraordinary general meeting on 3 December 2020.

In February 2020, the board proposed an ordinary dividend of NOK 5 per share for the 2019 financial year. The proposal was subsequently cancelled before the ordinary general meeting in May in response to the unclear situation resulting from the Covid-19 pandemic.

Veidekke's financial position is robust, and the order intake in the second and third quarters of the year has been strong. This has allowed to the board to propose distribution of 50% of the previously cancelled dividend, i.e. NOK 2.50 per share.

'Veidekke has always prioritised dividends, and will continue to do so. We have weathered the uncertainty brought by the pandemic well, although the recent increase in Covid-19 infection indicates continued caution. We are in a strong financial position, and are working actively to optimise our capital structure. We are therefore proposing distribution of half the dividend cancelled in March,' says Veidekke Board Chair Svein Richard Brandtzæg.

The board has previously announced its proposal to pay an extraordinary dividend of NOK 20 per share following the sale of Veidekke's property development operation. The sale was completed on 1 September.

Veidekke is inviting shareholders to approve the dividend proposal at an extraordinary general meeting on 3 December 2020. The total dividend of NOK 22.50 per share is due to be credited to shareholders approximately one week after the extraordinary general meeting.

This information is subject to a disclosure duty pursuant to section 5-12 of the Securities Trading Act.

For more information, please contact:
Jørgen Wiese Porsmyr, CFO, telephone [phone].
Lars Erik Lund, EVPStrategy and Sustainability, telephone: [phone].

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking all types of building and civil engineering assignments, the group also maintains roads and produces asphalt and aggregates. Veidekke emphasises stakeholder involvement and local experience. Its annual turnover is approximately NOK 37 billion, and half of its 8,200 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit every year since its inception in 1936.