DOCSLIB.ORG

Twenty Year Anniversary Special Edition!

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Twenty Year Anniversary Special Edition! www.hendershotinvestments.com www.hendershotinvestments.com Page 1 Dec. 2014 EDITOR: INGRID R. HENDERSHOT, CFA 1994-2014 TWENTY YEAR ANNIVERSARY SPECIAL EDITION! This issue marks twenty years of Hendershot Investments providing investment advice to our clients and the publication of this newsletter. Over this period, we have strived to provide our readers insightful market observations and long-term investment principles in an easy to understand format. This special edition looks back over the last twenty years at many of the feature articles appearing in each quarterly newsletter, as we addressed the events in the world and how we applied our investment philosophy during these times to build wealth through the ups and downs of the economy. We hope you enjoy this retrospective of the past 20 years. DECEMBER 1994: The initial publi- valued on the number of eyeballs discount to their underlying intrin- cation of Hendershot Investments viewing a website, a valuation sic value. Following this model, outlined our investment philosophy measure that deserved a hairy we identified several other stocks and started to build our investment eyeball! in the HI portfolio that might also portfolio with 20 stocks for the new catch the eye of the Oracle of year. Twenty years later, we still cur- In our JUNE 1996 issue, Record Omaha because of their tempting rently hold four of the original 20 Results, Year After Year, we re- valuation levels. Aware of Mr. stocks, which demonstrates our truly minded investors that they should Buffett’s fondness for sweets as long-term investment time horizon. keep in mind the fable of the tor- evident by his daily Cherry Coke toise and the hare when selecting cravings, we suggested that Toot- The MARCH 1995 issue featured the long-term investments. We wrote, sie Roll and Dairy Queen might article Record Share Buybacks “Racy, glamour stocks which also satisfy his sweet tooth. (Note: Bullish For The Future. While a quickly jump to big initial gains International Dairy Queen, which plethora of pessimists proclaimed the may tempt you. Over the long we owned in the HI portfolio, was stock market was overvalued, Corpo- term, these ‘hot’ investments often indeed acquired by Berkshire rate America was following the game evolve into harebrained holdings. Hathaway two years later in Janu- plan from the post-October 1987 ary 1998.) crash playbook and busily buying In fable lore, the bustling bunny back shares at a record pace. In poops out and becomes a hapless JUNE 1997 featured a review of 1987, these purchases allowed man- hare long before the investment the first of our 17 visits to the agement to scoop up shares at de- race is over.” We noted our prefer- Berkshire Hathaway annual meet- pressed prices and to reap the bene- ence “to bet on tenacious tortoise ing in Omaha, Nebraska, with a fits as the market doubled over the stocks...those companies which summary of the wise lessons next seven years. We asked, “Are deliver steady growth no matter learned from Mr. Buffett and his savvy investors rapidly repurchasing what the economic climate.” business partner, Charlie Munger. record amounts of their shares today This report would become a regu- in anticipation of an 8000 Dow follow- In DECEMBER 1996, after Berk- lar June feature following the ing the turn of the century? “ shire Hathaway had acquired meeting held in May each year. FlightSafety International, one of JUNE 1995 featured our first article our original investments, we identi- The DECEMBER 1997 issue had on the benefits of investing in HI- fied a few of our companies that us discussing a recurring topic of quality stocks that paid and increased would fit Berkshire Hathaway’s buying stocks on sale in the arti- their dividends over time. Meanwhile, investment criteria in an article cle, When Mr. Market Behaves our SEPTEMBER 1995 issue set out titled Warren Buffett Might Like Irrationally…. We wrote, “Mr. one of our crucial investment rules, These Stocks Too! Market is an excitable chap! He is “Don’t overpay for a stock.” subject to alternate bouts of de- With a long-term perspective, we pression and ‘irrational exuber- We cautioned about inflated technol- noted Mr. Buffett’s penchant for ance,’ a well-known phrase coined ogy valuations during the dot-com identifying solid companies, like by Alan Greenspan, the Federal era. Technology stocks with little FlightSafety, and buying them Reserve Chairman. The month of revenue and no profits were being when the stocks were selling at a October for some reason always Page 2 Hendershot Investments, 1994-2014 seems to bring out the worst in Mr. instead of sheep in their sleep. had seemed to notice their bare Market, and this past October was We wrote, “If before going to cupboards, they proudly paraded to no exception. sleep you placed an initial the party anyway with high hopes After suffering from the Hong Kong investment of $10,000 in and little else to show. Mr. Market flu, Mr. Market woke up on Oct. 27, Berkshire stock in 1965, you threw an exuberant party with 1997, in a downright despondent would wake up today with more bubbly flowing freely from a mood. He indiscriminately sold than $50 million! Few people seemingly endless fountain. When stocks, driving the market down in recognize that Mr. Buffett, the the party finally ended, Mr. Market its biggest point decline ever. The second-richest man in the world, woke up with a dreadful hangover next day Mr. Market realized he had actually is Rip Van Winkle! and vowed, “No more bubbly!” (Buffett keeps his disguise intact been a bit rash and bought back the Once Mr. Market sobered up, he very stocks he had sold the day by regularly shaving off his long beard with razors manufactured was surprised to discover so many before. On record volume of more Internet emperors wearing no than one billion shares, the market by Gillette, a holding of Berkshire.) As simply stated by clothes! Just then a gigantic rebounded with the biggest point balloon, hanging over the bubbly gain ever. Irrational behavior? You Mr. Buffett himself, ‘We continue to make more money when fountain, popped! The emperors bet!” tried valiantly to catch a fragment of snoring than when active.’ “ MARCH 1998 featured another HI ***** the balloon to cover up their deficiencies. However, most of the investment principle in the article, As the dot-com bubble began to Cash-Rich And Debt-Free Provides em-bar-assed emperors just burst, we featured articles streaked away, and their tulip-filled Opportunity where we identified discussing the valuation and some of our favorite investments, empires disappeared almost as price of these high-flyers. Our quickly...never to be seen again. companies that are cash-rich and DECEMBER 1999 article, Which debt-free. We observed that Internet Emperor Is Really Moral of the story: Before investing financially strong firms have inherent Wearing Clothes? perhaps best in Internet stocks, determine which competitive advantages, which are described the tumble of these Internet emperor is really wearing especially noticeable in market stocks. Our story began as clothes. Otherwise, you’ll likely end downturns. Companies, which follows: up with a barren asset!” consistently generate strong free cash flows with little debt, generally “Once upon a time in Internet In MARCH 2000, our feature article provide superior shareholder land, vast empires dot-commed How Can You Tell When It Is returns. the landscape. These tulip-filled Time To Sell? provided insights empires stretched from the In MARCH 1999, we explained the into our selling strategies as we mighty Amazon to the great value of long-term investing in the rebalanced our portfolio from high- Ebay. Each time a new Internet article, The Rip Van Winkle flying technology stocks into emperor was born through an Approach To Investing, citing unloved “old economy” stocks. We initial public offering, Mr. Market Warren Buffett’s philosophy that, “If wrote: “As Philip Fisher said in poured himself a glass of bubbly you aren’t willing to own a stock for Common Stocks and Uncommon to celebrate and giddily 10 years, don’t even think about Profits, ‘If the job has been done bestowed upon new emperors owning it for 10 minutes.” The Rip correctly when a common stock royal riches...by doubling or Van Winkle approach starts by is purchased, the time to sell it is tripling the stocks of the fledgling identifying HI-quality companies with -almost never.’ empires. consistent, long-term growth records, high returns on equity and Soon Internet emperors were There are times, however, when strong balance sheets. By investing popping up everywhere, and Mr. prices race far ahead of business in these stocks when valuations are Market decided to throw a grand values due to Mr. Market’s reasonable, investors may then take party. The Internet emperors “irrational exuberance” about future a long nap and completely ignore realized this might be their final business prospects such as with the daily rumblings and inevitable chance to obtain further riches technology and biotechnology crashes of the market. They will from the woozy Mr. Market so stocks. You will note that we take then wake up and happily find their they all shopped for the finest partial profits then. At the same wealth is significantly greater than party clothes. Unfortunately, time, there are many stocks which when they began their hibernation. many emperors had empires appear undervalued and offer very Using Mr. Buffett’s company, which generated little sales and attractive buying opportunities. Berkshire Hathaway, as an no profits. Alas, these poor Rebalancing the portfolio by example, investors over the years Internet emperors had no money trimming back stocks that appear have been counting money bags for clothes.
Load more

Recommended publications
  • Mutual Fundconfusion
    financial fitness By Erik Ford any cash to cover your tax bill and can create an unpleasant surprise at tax time. While there is not much you can do as long as you are using mutual funds and reinvesting dividends, understanding can be MUTUAL FUND CONFUSION helpful. Some things you can do is to concentrate the more tax effi- If you are like most individual investors, you invest at least a por- cient investments in your taxable accounts and the less tax efficient tion of your financial assets in mutual funds. Mutual funds can be investments in your tax deferred accounts, such as IRA’s. an efficient way for individual investors to gain access to profes- sional management, gain broad diversification and automatically The second issue that may cause confusion is where a mutual reinvest on a dollar cost average basis. However, mutual funds fund position may show on the statement as a loss, when quite can also be confusing in their effect on your taxes and on your the opposite is the case when you crunch the numbers on a total statements, requiring a deeper understanding to avoid confusion return basis. To illustrate this consider the following hypothetical or misplaced disappointment. example. The original investment was made several years ago for $20,000. It is now worth $26,000 but shows a loss on the statement Regarding taxes, which are not a factor in retirement accounts like of $12,000. How can this be? When the past returns on the mutual an IRA or 401(k), you may find you have taxable income, sometimes fund are reviewed, there is nothing in the performance that explains substantial taxable income, at the same time as your mutual fund a net loss in value.
    [Show full text]
  • Refinitiv Corporate Actions Methodology
    REFINITIV EQUITY INDICES Corporate Action Methodology April 2020 Published: April 6, 2020 © 2019 Refinitiv Limited. All Rights Reserved. Refinitiv Limited, by publishing this document, does not guarantee that any information contained herein is or will remain accurate or that use of the information will ensure correct and faultless operation of the relevant service or associated equipment. Neither Refinitiv Limited, nor its agents or employees, shall be held liable to any user or end user for any loss or damage (whether direct or indirect) whatsoever resulting from reliance on the information contained herein. This document may not be reproduced, disclosed, or used in whole or part without the prior written consent of Refinitiv. 1 Sensitivity: Confidential Contents Introduction ......................................................................................................................................... 3 Corporate Actions ............................................................................................................................... 4 1.1 Cash Dividend .......................................................................................................................... 4 1.2 Special Dividend ...................................................................................................................... 5 1.3 Cash Dividend with Stock Alternative ....................................................................................... 5 1.4 Stock Dividend ........................................................................................................................
    [Show full text]
  • August 7, 2020 Second Quarter 2020 Earnings Call
    Assured Guaranty Ltd. (AGO) August 7, 2020 Second Quarter 2020 Earnings Call Robert Tucker Senior Managing Director, Investor Relations and Corporate Communications Thank you operator. And thank you all for joining Assured Guaranty for our Second Quarter 2020 financial results conference call. Today’s presentation is made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The presentation may contain forward-looking statements about our new business and credit outlooks, market conditions, credit spreads, financial ratings, loss reserves, financial results or other items that may affect our future results. These statements are subject to change due to new information or future events, therefore you should not place undue reliance on them, as we do not undertake any obligation to publicly update or revise them, except as required by law. If you are listening to a replay of this call, or if you are reading the transcript of the call, please note that our statements made today may have been updated since this call. Please refer to the Investor Information section of our website for our most recent presentations and SEC filings, most current financial filings, and for the risk factors. This presentation also includes references to non-GAAP financial measures. We present the GAAP financial measures most directly comparable to the non-GAAP financial measures referenced in this presentation, along with a reconciliation between such GAAP and non-GAAP financial measures, in our current Financial Supplement and Equity Investor Presentation, which is on our website at AssuredGuaranty.com. Turning to the presentation, our speakers today are Dominic Frederico, President and Chief Executive Officer of Assured Guaranty Ltd.
    [Show full text]
  • The RMR Group Inc. Declares Special Dividend of $7.00 Per Share
    Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 617-796-8390 rmrgroup.com NEWS RELEASE The RMR Group Inc. Declares Special Dividend of $7.00 Per Share 8/25/2021 NEWTON, Mass.--(BUSINESS WIRE)-- The RMR Group Inc. (Nasdaq: RMR) today announced that it has declared a one-time, special cash dividend on its shares of Class A Common Stock and Class B-1 Common Stock of $7.00 per share to all common stockholders of record as of the close of business on September 6, 2021, payable on or about September 16, 2021. Based on the current number of shares outstanding, the special cash dividend is expected to result in an aggregate distribution of approximately $220 million. This special dividend is in addition to the Company’s regular quarterly cash dividends. Adam Portnoy, President and Chief Executive Ocer, made the following statement: “Returning excess capital to shareholders in the form of this $7.00 per share special dividend is a key component of RMR’s capital allocation strategy and reects our strong nancial position and condence in the company’s nancial future. Following this distribution, our cash balance remains robust and continues to aord us the exibility to expand our business both through acquisitions and organic growth.” About The RMR Group The RMR Group Inc. (Nasdaq: RMR) is a holding company and substantially all of its business is conducted by its majority owned subsidiary, The RMR Group LLC, or RMR. RMR is a leading U.S. alternative asset management company, unique for its focus on commercial real estate (CRE) and related businesses.
    [Show full text]
  • A Declared Cash Dividend Issued to Investors
    A Declared Cash Dividend Issued To Investors Lyrical and electrotypic Ambrosio often enravishes some cameras lots or inspirit philologically. Nonpareil Rusty sometimes incarcerated any cray pop-up irrevocably. Huntley often drums indeterminably when dry Antoni ironizes disadvantageously and clunk her model. Read more shares When they declare a cash dividend, some companies debit a Dividends account instead of Retained Earnings. Stock exchanges that the drd to shareholders receive the date of your business return on the auto industry to a stock is prohibited from different investments in common stock! Investing or financing cash activities interest or dividend received shall together be. There longer three dividend dates: date of declaration, date with record, and substitute of payment. Why should distribute some stocks into a declared dividend issued cash to investors interested in common? Navistar bond issue illustrates the typical features of a convertible bond. Of than cash dividend payments it declared in die past two years in this section. It is dividend declared a cash to investors use the asset that has the number of. The investor sentiment may be paid when it is usually paid out would be received cash, which will be paid out more than a valid business. Try again later date on investor email id already know a company. The company becomes liability under current financial structure or cash dividend declared issued to a cash dividend is also be that do dividends available and. What is a much better investor makes to determine whether paid to cash for many individuals will reprice the date. Just simple a bank paid dividends in the bag does let mean the.
    [Show full text]
  • Special Dividends for Option Holders
    Stock & Option Solutions Special Dividends for Option Holders Special Dividends For Option Holders The Special Dividend Over the course of the last year, SOS assisted several clients with processing a special dividend on their company stock which also impacted for their stock plan participants. While the shareholders receive the dividend payout, these dividends impact equity instruments. While the impact to optionees varies between companies, the one constant is that those who hold options or awards see a change to their grants that is equivalent to the dividend payout. This process begins when a company decides to reward their shareholders for investing in the company, often when a company has cash on hand but the share price has not delivered the desired value. The board of directors determines the payout (on a per share basis) to provide and give that amount in either cash or stock to shareholders of the company. This payment is known as a special dividend. The clients with whom we have worked most recently provided cash dividends to their shareholders and adjusted the outstanding stock grants accordingly. How do they work? With most of our clients the adjustment to the stock option or restricted stock unit was as follows: Employees who hold an unexercised stock option have the exercise price reduced by the amount of the special dividend. In cases where there is a $0.00 share price, as in the case of an unvested restricted stock unit award, or the exercise price is under a particular threshold (as determined by the dividend), then an increase to the underlying shares of the option or award is applied to provide an equivalent ratio for those holders.
    [Show full text]
  • Shareholder Compensation As Dividend
    Michigan Law Review Volume 108 Issue 3 2009 Shareholder Compensation as Dividend James J. Park Brooklyn Law School Follow this and additional works at: https://repository.law.umich.edu/mlr Part of the Insurance Law Commons, Legal Remedies Commons, and the Securities Law Commons Recommended Citation James J. Park, Shareholder Compensation as Dividend, 108 MICH. L. REV. 323 (2009). Available at: https://repository.law.umich.edu/mlr/vol108/iss3/2 This Article is brought to you for free and open access by the Michigan Law Review at University of Michigan Law School Scholarship Repository. It has been accepted for inclusion in Michigan Law Review by an authorized editor of University of Michigan Law School Scholarship Repository. For more information, please contact [email protected]. SHAREHOLDER COMPENSATION AS DIVIDEND James J. Park* This Article questions the prevailing view that securities-fraud actions suffer from a circularity problem. Because shareholder plaintiffs are owners of the defendant corporation, it is commonly argued that shareholder compensation is a payment from share- holders to themselves with substantial transactioncosts in the form of attorney fees. But shareholdercompensation is no more circular than a dividend, which is a cash payment to shareholdersfrom the company they own with substantial transactioncosts in the form of taxes. In fact, shareholder compensation is less circular than a dividend because it is a transfer to shareholders who purchased stock when the price was inflated by fraud from those who did not. Shareholder compensation serves an important loss-spreading function that is facilitated by the insurance market. Shareholder compensation may also capture some of the benefits of paying divi- dends, such as signaling and reducing agency costs, though it may do so more effectively if companies could resolve securities-fraud actions by paying a preemptive dividend.
    [Show full text]
  • November 8, 2019 Dear KBS Real Estate Investment Trust III Stockholder
    November 8, 2019 KBS Real Estate Investment Trust III, Inc. c/o DST Systems, Inc. PO Box 219453 Kansas City, MO 64121-9453 [Investor Name 1] [Investor Name 2] [Address] [City, State and Zip] Dear KBS Real Estate Investment Trust III Stockholder: You are receiving this letter and the enclosed Questions and Answers (“Q&A”) and Election Form in connection with the special dividend declared by the Board of Directors of KBS Real Estate Investment Trust III, Inc. (the “Company”) on October 23, 2019, of $0.80 per share of common stock, par value $0.01 per share, of the Company. The special dividend is payable to the Company’s stockholders as of the close of business on November 4, 2019 (the “Record Date”). The special dividend is payable in the form of either (1) cash or (2) shares of the Company’s common stock, at the election of Company stockholders; provided that the aggregate amount of cash to be distributed by the Company will be limited to a maximum of 35% of the total special dividend (the “Maximum Cash Distribution”), with the remainder to be paid in shares of the Company’s common stock. Specifically, if the total number of shares for which cash elections are made by Company stockholders (including Default Elections (defined below)) are in excess of the Maximum Cash Distribution, the payment of cash will be made on a pro rata basis to those stockholders, such that the aggregate amount paid in cash by the Company equals the Maximum Cash Distribution, and the remaining portion of the special dividend will be paid to these stockholders in the form of Company common stock.
    [Show full text]
  • Second Quarter 2020 Financial Results
    SECOND QUARTER 2020 FINANCIAL RESULTS August 7, 2020 Allen F. “Pete” Grum President & CEO Daniel P. Penberthy Executive Vice President & CFO © 2020 Rand Capital Corporation Nasdaq: RAND SAFE HARBOR STATEMENT This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the intention of Rand Capital (“Rand,” “Rand Capital” or the “Company” ) and Rand Capital SBIC, Inc. (“Rand SBIC”) to elect to be taxed as a regulated investment company (“RIC”) for U.S. federal tax purposes; the impact of the COVID-19 pandemic on Rand and our portfolio companies; the timing and completion of the contemplated reverse stock split; the number of shares of Rand’s common stock outstanding after the completion of the reverse stock split; the amount of Rand common stock that the Company plans to repurchase and the time period during which such repurchases are to occur; the competitive ability and position of Rand and the ability of Rand to execute on its investment strategy; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements.
    [Show full text]
  • Understanding Financial Management: a Practical Guide Guideline Answers to the Concept Check Questions
    Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions Chapter 12 Dividend Policy Concept Check 12.1 1. What is the difference between regular cash dividends and specially designated dividends? A regular cash dividend is the distribution of earnings to shareholders in the form of cash. Dividend paying firms typically pay quarterly dividends. If a company pays regular, steady dividends, investors will come to expect them. Regular cash dividends represent unlabeled dividends. A specially designated dividend (SDD) is one that management labels as “extra”, “special”, or “year-end”. Labeling dividends allows management to differentiate a SDD from a regular cash dividend and communicate this difference to stockholders. This ability to label dividends indicates how seriously management considers this communication through dividend announcements. Regular dividends should potentially convey more information than SDDs because management labels the latter as temporary dividends. Although firms often declare SDDs after experiencing good earnings over the previous year, investors should not expect the operating performance that precedes a special dividend to continue after the announcement. Research indicates that earnings changes after regular dividend changes are greater than earnings changes after SDDs. 2. Who is ultimately responsible for deciding a corporation's dividend policy? The board of directors is ultimately responsible for setting a firm’s dividend policy. The board has the discretion of whether to pay dividends, which can be in the form of cash, stock, or merchandise. The most common form of dividends is cash. Top managers, especially the chief executive officer and chief financial officer, often provide input to help the board set a corporation’s dividend policy.
    [Show full text]
  • Extraordinary Dividend Followed by the Dilution of Shareholders' Interest
    BINDING PRIVATE RULING: BPR 364 DATE: 26 May 2021 ACT : INCOME TAX ACT 58 OF 1962 (the Act) SECTION : PARAGRAPHS 43A AND 64B OF THE EIGHTH SCHEDULE SUBJECT : EXTRAORDINARY DIVIDEND FOLLOWED BY THE DILUTION OF SHAREHOLDERS’ INTEREST Preamble This binding private ruling is published with the consent of the applicant(s) to which it has been issued. It is binding between SARS and the applicant only and published for general information. It does not constitute a practice generally prevailing. 1. Summary This ruling determines the capital gains tax consequences of a proposed special dividend, followed by a dilution of shareholders’ interest. 2. Relevant tax laws In this ruling references to sections are to sections of the Act applicable as at 13 April 2021. Unless the context indicates otherwise any word or expression in this ruling bears the meaning ascribed to it in the Act. This is a ruling on the interpretation and application of paragraphs 43A and 64B of the Eighth Schedule to the Act. 3. Parties to the proposed transaction The applicant: A resident company Company A: A non-resident company 4. Description of the proposed transaction The applicant currently holds more than 90% of the ordinary shares in Company A. Company A is not incorporated or effectively managed in South Africa. The applicant has held this shareholding in Company A, on capital account, for more than 18 months prior to the date of this application and the date of the proposed transaction. Company A is considering listing 100% of its equity shares on a foreign securities exchange (FSE), which will include an Initial Public Offering (IPO) of 20% of Company A.
    [Show full text]
  • Report on the Special Dividend in Kind and on the Special Interim Dividend in Kind to Be Distributed in the Form of Universal Music Group N.V
    This is a free translation of the report “Rapport sur le dividende exceptionnel en nature et sur l’acompte sur dividende exceptionnel en nature devant être distribués en actions Universal Music Group N.V.” issued in the French language and is provided solely for informational purposes to English speaking readers. In case of any discrepancy, the French version prevails. REPORT ON THE SPECIAL DIVIDEND IN KIND AND ON THE SPECIAL INTERIM DIVIDEND IN KIND TO BE DISTRIBUTED IN THE FORM OF UNIVERSAL MUSIC GROUP N.V. SHARES The Management Board of Vivendi SE ("Vivendi") is asking the company’s shareholders, at the Annual General Shareholders' Meeting to be held on June 22, 2021, to approve, in addition to the distribution of an ordinary annual dividend of €0.60 per share, the distribution of a special dividend in kind in the form of shares of Universal Music Group N.V. ("UMG") (the "Special Dividend"). If this resolution is approved and the UMG shares are admitted to trading on the regulated market of Euronext Amsterdam, the Management Board will then decide, subject to an interim balance sheet certified by the Statutory Auditors showing sufficient distributable earnings, to supplement the Special Dividend with a special interim dividend in kind in the form of UMG shares in respect of the current fiscal year (the “Interim Dividend”). The Special Dividend and the Interim Dividend (together, the "Distribution in Kind") would be paid in a single transaction on September 29, 2021, on the basis of one (1) UMG share for every one (1) Vivendi share held, in accordance with the terms and conditions described below.
    [Show full text]