The Extraordinary General Meeting of Mecalux’s shareholders today approved the distribution of an extraordinary dividend in the gross amount of 0.16 euros per share, for a total amount of 5,377,240 euros, and the increase in capital stock paid up out of the share premium (bonus issue) in the ratio of 1 new share for every 10 old shares, which represents 3,360,775 new shares in the company’s ordinary stock. With this new distribution of dividends, the company matches the per-share payment made in 2007, which was 0.49 euros. Furthermore, the appointments of Mariano Pérez Claver and Ángel Córdoba Díaz were approved as representatives of Caja Madrid on the Board of Directors of Mecalux. Mr. Pérez Claver is President of Gesmadrid, the fund management company belonging to Caja Madrid, while Mr. Córdoba Díaz is the Assistant General Manager of the organization. Both will contribute their experience and background in the financial sector to Mecalux’s Board of Directors.
The increase, which allowed Caja Madrid to enter with 20%, was communicated to the Spanish securities and exchange commission on June 3 and was subscribed on July 15. Caja Madrid entered with a total amount of 168 million euros, which represents a significant contribution to the strong growth and expansion process in international markets that is under way at Mecalux.
Mecalux rules out exercising purchase option on UFC Interlake Holding
Likewise, the decision was announced from Mercalux's Board not to exercise its purchase option on UFC Interlake Holding Co., due to the current North American market situation. The company has decided to maintain its growth strategy on all markets, including America, without pursuing this acquisition. The price of the option premium, 5.8 million euros, will be considered an expense during the current fiscal year. Mecalux maintains its growth drive, especially in developing markets such as the Asian and Eastern European markets, as well as those in certain Latin American countries, and does not rule out participating in other consolidation processes within the sector. The company therefore does not reject the possibility of making new investments and acquisitions in the future, since this is a fundamental route for its expansion. As a result of its size and strategic position in the 16 countries where it operates, Mecalux is in a key position to lead any changes the sector may experience.
Third quarter 2008 results
In addition, the Extraordinary General Meeting of Shareholders approved the results for third quarter 2008, which show a sales increase of 12%, reaching 496 million euros as compared to 444 million euros during the same period the previous fiscal year. The net profit during this third quarter rose by 18% to reach 40 million euros. Mecalux attributes this strong growth to the positive evolution of all markets. Especially noteworthy is the evolution of the Eastern European markets, with a 73% growth in the Polish subsidiary, and the excellent response in certain countries, such as Brazil, where Mecalux grew by 83%. Mecalux believes its commitment to the automated warehouse division will result in continued growth on all markets, due to the strong current demand for automation in many companies.