15/08/2007 | 08:00 CEST | Group Announcements
The terms of the share purchase agreement with GN Store Nord A/S allow each party to terminate the transaction if the conditions to closing, including the necessary merger control approvals, have not been obtained by August 15, 2007.
On April 11, 2007, the German Federal Cartel Office (Bundeskartellamt, BKartA) blocked the acquisition of the ReSound group on a world wide basis. Sonova did not accept the prohibition of the BKartA and appealed to the competent court, the Oberlandesgericht (OLG) Düsseldorf.
On August 8, 2007, the OLG Düsseldorf ruled that it does not have the power to grant interim relief in merger prohibition cases. Since the main appeal procedure can take months or even years, Sonova has decided to terminate the share purchase agreement. The share purchase agreement does not foresee any payment obligation of either party upon termination.
The Board of Directors of Sonova Holding AG has resolved to implement a share buy-back program of up to 10% of the share capital of the company to be executed over the next three years. The share buy-back program allows Sonova to return its cash not used for operations and funds generated from future free cash flows to its shareholders. Due to the solid financial position of Sonova, this share buy-back program will not impact the financial flexibility for further internal and external expansion.