DFDS' Board of Directors has decided to increase the distribution to shareholders in light of the higher level of earnings and alignment of the financial leverage to the policy on capital structure and distribution.
The share buyback of up to DKK 500m will be structured as an auction process and start on 8 February 2017 and be completed on 21 February 2017. The share buyback of up to DKK 300m will run under the Safe Harbour rules and likewise start on 8 February 2017 and be completed no later than 15 August 2017.
In addition to two share buybacks of up to DKK 800m, the dividend proposed to be paid in 2017 is around DKK 450m equal to DKK 8.00 per share. The Board of Directors consequently plan to distribute a total of DKK 1.25bn to shareholders in 2017 besides DKK 86m already distributed in 2017.
DFDS' target capital structure is a ratio of net interest-bearing debt to EBITDA before special items (NIBD/EBITDA) of between 2.0 and 3.0. At the end of 2016 NIBD/EBITDA was 0.9.
DFDS' Board of Directors continually assesses the capital structure in relation to earnings and future investment requirements, including acquisitions.
Conditions and details on the two share buybacks will be disclosed
on 8 February 2017.