June 30, 2011
The Grundfos Group is growing and facing exciting new global challenges.
As the main shareholder of Grundfos Holding A/S, The Poul Due Jensen Foundation, wishes to share this development with staff. You are therefore now offered the opportunity to invest in employees shares in the parent company Grundfos Holding A/S on favourable terms.
- The time, the financial basis and the company’s activities favour an employee share offer. We wish to share this with the largest possible number of staff throughout the Group so that together we can create an even stronger Grundfos, says Niels Due Jensen, Chairman of the Board of The Poul Due Jensen Foundation, which is behind the offer.
Same offer to everyone
The offer is extended to everyone employed by the Group as at 1 June 2011 and working for a company included in the offer. Not all companies are included, as the legislation in a few countries does not allow such an offer.
- It is the largest offer of employee shares in Grundfos’ history – a total of 46 countries are included. At the moment we are sending out the offer to staff so they can order shares from Monday 4 July until 15 August, says Jens Mundbjerg, Partner in People & Strategy and Chairman of the committee arranging the share offer.
- There is an upper limit of the total offer and, at the order form staff will be informed how many shares they are allowed to buy, he says.
Shares with attractive discounts
Shares are offered at various discounts as well as undiscounted.
The discount percentages reflect a wish to enable more employees to buy shares. The discount is 75 per cent on the first shares and 40 per cent on subsequent shares.
- The shares are subject to a settlement period of five years, during which they cannot be sold or transferred. After five years, the shares may only be sold or transferred to The Poul Due Jensen Foundation, says Jens Mundbjerg.
A high priced share
This year, Grundfos shares are at a high level – priced at DKK 662.08. The share price is based on a calculated market price, comparing the Group’s results with the results of a selection of Danish and international listed companies, including seven international pump companies.
So far, Grundfos Holding A/S has paid dividend every year. In recent years, the dividend has been variable and, among other things, dependent on the Group result. However, a dividend policy has not been agreed for the coming years.
- The main benefit for you as a shareholder is the added value of Grundfos in the form of profitable growth and therefore the difference between your purchase price – including any discount – and the market price at which you can sell the shares after the end of the settlement period, says Jens Mundbjerg.