Cramo Plc Company announcement 8 June 2009, at 14.30 pm Finnish time (GMT+2)
Cramo's Executive Committee members increase their ownership in the Company as
part of an executive incentive arrangement
The Board of Directors of Cramo Plc has accepted a new share ownership program
for Cramo's Executive Committee. The agreements on the ownership program have
been signed today. The purpose of the arrangement is to commit the Executive
Committee members to the company by encouraging them to acquire and hold the
company's shares and thereby to increase the company's long-term shareholder
value.
For the purpose of the share ownership, Cramo Executive Committee members have
established a company called Cramo Management Oy. The Executive Committee
members own the entire share capital of the company, the intention of which is
to acquire Cramo Plc's shares from the market for a maximum total of EUR
2,500,000. The share purchases will be financed by equity investments by the
Executive Committee members, in total amounting to approximately EUR 500,000, as
well as by a loan provided by Cramo Plc. The Executive Committee members have
partly financed their capital investments in Cramo Management Oy by selling
their previously-owned Cramo Plc shares in the market.
As part of the arrangement, Cramo Plc will grant Cramo Management Oy an
interest-bearing loan for the maximum amount of approximately EUR 2.0 million to
finance the acquisition of the company's shares. The loan will be repaid in full
by 31 December 2012. In case the validity of the arrangement is extended by two
years (as described below), the loan period can be extended accordingly. Cramo
Management Oy has an obligation to repay the loan prematurely by selling Cramo
Plc shares held by it in case the share price of the company other than
temporarily exceeds a certain level determined in the arrangement.
The arrangement will be valid until autumn 2012, whereupon the arrangement is
intended to be dissolved in a manner to be determined later. The arrangement may
be dissolved, e g, by placing Cramo Management Oy into liquidation, by merging
it with Cramo Plc, or by selling the Cramo Plc shares held by Cramo Management
Oy by other means. The arrangement will be continued for further two years in
case the share price of Cramo Plc in November 2012 is below the average price
which Cramo Management Oy paid for the Cramo Plc shares in its holding. The
transfer of Cramo Plc shares held by Cramo Management Oy is restricted during
the validity of the arrangement. All the Executive Committee members' holdings
in Cramo Management Oy are valid until the termination of the program.
Vantaa, 8 June 2009
CRAMO PLC
The Board of Directors
Further information
Mr Martti Ala-Härkönen, CFO, tel. +358 10 661 10, +358 40 737 6633
Distribution
NASDAQ OMX Helsinki Ltd.
Major media
www.cramo.com
Cramo is a service company specialising in construction machinery and equipment
rental and rental-related services, as well as the rental and sale of modular
space. As one of the industry's leading service providers in the Nordic
countries and Central and Eastern Europe, Cramo operates in eleven countries
with approximately 300 depots. With a group staff of 2.600, Cramo's consolidated
sales in 2008 totalled EUR 580 million and Cramo shares are listed on the NASDAQ
OMX Helsinki Ltd. For further information, please visit www.cramo.com.
Cramo's Executive Committee members increase their ownership in the Company as part of an executive incentive arrangement
| Source: Cramo Oyj