METRO AG - METRO Group

Metro stock
First quotation of METRO AG stock
on July 25, 1996
On July 19, 1996, upon entry in METRO AG’s
Commercial Register of the merger, trading in
Asko Deutsche Kaufhaus AG common and preferred
stock, in Deutsche SB-Kauf AG common
stock and in Kaufhof Holding AG common and
preferred stock was discontinued. Pending the
commencement of official quotation, initially
only share exchange options for METRO AG
stock were traded between July 19 and 24, 1996.
Then, on July 25, 1996, METRO AG stock was
for the first time officially listed at the stock exchanges
in Frankfurt/Main and Düsseldorf. The
opening price of common stock was DM 136,
while preferred stock I and II was each quoted
at DM 101.
Par value of Metro stock fixed at DM 5
By subdividing the capital stock into DM 5 shares
at par after the merger, the magnitude of Metro
stock prices is now on an internationally accepted
level. METRO AG thus addresses a wide
range of potential stockholders and promotes
investment in shares by private individuals.
METRO AG’s stock is divided into three classes:
common stock, preferred stock I, and preferred
stock II. In terms of dividend privileges, preferred
shares I are based on former Kaufhof preferred
stock, while Metro preferred stock II is
predicated on former Asko preferred stock. This
means that the two classes of preferred stock
entitle holders to different dividend claims depending
on the percentage of distribution for
common stock (in percent of share par value).
Equity-funded capital increase
METRO AG
Additional information
The increase in capital stock, announced in the
merger period and to be equity funded, has
meanwhile been firmly planned. Subject to the
approval by the annual stockholders’ meeting
of July 9, 1997, the capital stock will be raised
in the ratio of 5:7 by transfer from the reserve
from capital surplus. The capital stock will then
increase by DM 701.7 million, from DM 501.2
million to DM 1,202.9 million.
This move is believed to clearly improve the
liquidity of all Metro stock classes after implementation
of the capital transactions.
At the same time, based on the proposed adjustment
ratio, another accounting adjustment
to the Metro stock price level in relation to other
listed international trading corporations will be
the consequence.
After implementing the equity-funded capital increase
and fully utilizing the EK-01 low-tax equity
portion, profit distributions for fiscal 1997 will
probably be made from the tax-exempt EK-04
equity portion; since this source of distribution
is deemed repaid capital, it will be nontaxable
income for stockholders. However, stockholders
carrying their investment in METRO AG as operating
assets will be required to deduct such distributions
from their book value.
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