euro adhoc: Bayerische Motoren Werke AG
other
Reduction of shareholding in
engine manufacturer Rolls-Royce Group plc, London;
Significant one-off gain expected as result of settling the exchangeable bond
relating to Rolls-Royce Group plc shares
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
24.02.2006
CONVENIENCE TRANSLATION ONLY GERMAN VERSION IS BINDING
In connection with the euro 560.5 million exchangeable bond issued by BMW Finance N.V. on shares in Rolls-Royce Group plc, London, exchange notices have been received from bondholders by February 24, 2006 relating to 64% of the exchangeable bonds total nominal amount; these exchange declarations will be settled by delivering Rolls-Royce Group plc shares held by the BMW Group.
Servicing the exchange requests received to date by the delivery of Rolls-Royce Group plc shares already held by the BMW Group will reduce BMWs shareholding in Rolls-Royce Group plc by 102,134,975 shares, taking it from approximately 9.02% to approximately 3.25% of Rolls-Royce Group plcs share capital. 21,212,866 shares have already been delivered. On February 24, 2006 it was decided to deliver up to a further 80,922,109 shares in settlement of the exchange requests received to date, rather than to opt for a possible cash payment.
The sale of shares on the scale described above is expected to generate a gain of euro 300 million for the BMW Group in the first quarter 2006; this gain could rise accordingly if further exchange requests are received and serviced. It should be noted that this transaction gives rise to a one-off, non-cash gain which is not related to the core business activities of the BMW Group.
This compares to the fair value loss of euro 231 million on the exchangeable bond recognised against earnings in the first three quarters of 2005, as already reported.
BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT Petuelring 130 D - 80788 Munich
end of announcement euro adhoc 24.02.2006 13:14:48
Further inquiry note:
Marc Hassinger
+49(0)89 382 23362
Mathias Schmidt
+49(0)89 382 24118
Branche: Automotive Equipment
ISIN: DE0005190003
WKN: 519000
Index: DAX, CDAX, Classic All Share, HDAX, Prime All Share
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