ANNUAL REPORT 2009 - GAM Holding AG

Distribution of dividend
In 2009 an ordinary dividend of CHF 103 315 378 has been paid (dividend per share: CHF 0.50). For 2009 no dividend has been proposed.
Distribution of a special dividend
At the Extraordinary General Meeting on 30 June 2009, it was decided to distribute to the shareholders as follows:
(a) a dividend-in-kind consisting of one registered share of Julius Baer Group Ltd. with a nominal value of CHF 0.02 per registered share of
Julius Baer Holding Ltd. entitled to receive a dividend (in total 206 630 756 registered shares of Julius Baer Group Ltd.); plus
(b) a cash dividend in the amount of CHF 0.01076923 per registered share of Julius Baer Holding Ltd. entitled to receive a dividend (in total
CHF 2 225 254), which will not be paid to the shareholders, but will be remitted to the Swiss tax authorities by Julius Baer Holding Ltd. in
order to satisfy the liability for Swiss withholding tax.
At the Extraordinary General Meeting on 30 June 2009, a decision was taken that the legal reserves of GAM Holding Ltd. (formerly Julius Baer
Holding Ltd.) be converted in an amount of CHF 4 847 232 563 into free reserves and that therefore the account “general legal reserves”
(capital reserves) be reduced by CHF 4 847 232 563 and the new account “further other reserves” (retained earnings) be credited with the
same amount of CHF 4 847 232 563.
The dividend-in-kind was accounted for at the fair value as follows:
Distribution of non-cash dividend to Julius Baer Group
31.12.2009
CHF 1000
Fair value of the dividend paid 8 290 026
Carrying amount of the net assets distributed -4 163 769
Net realised losses on other comprehensive income
reclassified to the income statement -130 275
Transaction costs deducted from gain on non-cash divided paid, net of tax -53 100
Gain on non-cash dividend paid, net 3 942 882
The transaction was recognised and measured in accordance with “IFRIC 17 – Distribution of Non-cash Assets to Owners”. This treatment leads
to a substantial gain on the distribution of the non-cash assets to its shareholders, which results essentially from the difference in the market
value of the new Julius Baer Group Ltd. shares and the underlying net assets divested.
Directly attributable and incremental transaction costs have been deducted. These transaction costs comprise legal, investment banking,
auditors’ review and various advisory fees, as well as CHF 4.9 million of personnel costs and CHF 18.6 million of Long-Term Incentive Plan
costs and related taxes and levies.
For further information on the separation of the private banking and asset management businesses refer to page 47.
80 GAM Holding Ltd. Annual Report 2009