2008 Registration Document - Rexel

14. Financial information concerning the assets andliabilities, financial position and profits and lossesof Rexelamount of €1,052.9 million, interests included. The valueof the shares is identical to those held for the new sharesissued in Rexel’s IPO, more specifically, €16.5 dividedbetween the face value of €5.0 and the issuance premiumof €11.5 per share.(6) Increase in capital as a result of the IPOActing under the mandate given by the Shareholders’Meeting of February 13, 2007, the Company’s ManagementBoard decided to issue 60,606,060 shares at face valueof €5 a piece on April 11, 2007, in the form of an increasein capital with the cancellation of preferential subscriptionrights through an IPO. The value of the shares was fixedat €16.5, reflecting an issuance premium of €11.5. Thefees stemming from this increase in capital are deductedfrom the issuance premium for an amount of €42.9 million(before tax).(7) Increase in capital as a resultof the employee offeringActing under the mandate given by the Shareholders’Meeting of February 13, 2007, the Company’s ManagementBoard decided on April 18, 2007 in favor of two capitalincreases with the cancellation of preferential subscriptionrights:− to members of the Rexel Group Savings Plan (PEG) andthe Rexel Group International Savings Plan (PEGI), for anamount of €19.3 million, with the issue of 1,436,874 newshares;− to BNP Paribas Arbitrage SNC, for an amount of€13.3 million, representing 1,008,314 new shares, inorder to cover its engagement in Share AppreciationRights (SARs) issued to employees in certain countries.Treasury sharesThe Shareholders’ Meeting of May 20, 2008 authorisedthe Company’s Management Board with subdelegatationpower, to buy shares of the company amounting to amaximum of 10% of the share capital at a maximum price of€30 per share. This programme is capped to €350 millionand has duration of 18 months from the date of theShareholders’ Meeting (ending November 20, 2009).The objectives of this programme in order of priority are asfollows:− to ensure the liquidity and foster the stock market byhaving an intermediary investment services provideracting independently, under a liquidity agreementcompliant with the code of ethics recognized by theAMF;− to implement share purchase option plans of the company,in accordance with the provisions of Article L.225-177and following of the French Code of Commerce, anyattribution of free shares within the framework of anysavings plan undertaken in accordance with the provisionsof articles L.443-1 and following of the French Code ofLabor, any attribution of free shares in accordance withthe provisions of articles L.255-197-1 and following of theFrench Code of Commerce, any attribution of shares inthe context of profit sharing and the operations to hedgethese schemes, under the conditions set by the marketauthorities and at the time the Management Board or theindividual acting on behalf of the Management Board willact;− to conserve and to provide shares in exchanges orpayments concerning external growth, with a limit of 5%of the company’s share capital ;− to provide shares in the occasion of rights attachedto securities giving access to capital being exercised,immediate or long-term ;− to cancel all or part of the shares repurchased, subject tothe 25 th decision of the Shareholders’ Meeting of May 20,2008.− and any other objective compliant with regulation inforce.In connection with this share repurchase programme,Rexel entered into a contract with the Rothschild bankto promote the liquidity of its shares for an amount€11.0 million under a mandate given by the SupervisoryBoard in November 2007. This amount may be adjustedeither up or down as required to ensure the effectivenessof the contract.On December 31, 2008, Rexel held 1,215,015 treasuryshares acquired at an average price of €7.358 per share,recorded as a reduction in shareholders’ equity for anamount of €8.9 million.In addition, losses on treasury shares disposed of duringthe period amounted to €1.8 million net of tax and wererecognized as a reduction of equity.14.2 Capital ManagementSince April 4, 2007, Rexel’s shares have been admitted tothe Eurolist market of Euronext Paris. The principal indirectstakeholders of Rexel – investment funds managed byClayton; Dubilier & Rice, Inc., Ray France Investment S.A.S(a subsidiary of Eurazeo S.A.), investment funds managedby Merrill Lynch Global Private Equity (collectively, the “MainInvestors”), and Caisse de Dépôt et de Placement du Québec(together with the Main Investors, the “Investors”) agreed toorganize the sale of part or all of the shares they hold in Rexel,directly or indirectly, in accordance with certain terms. Eachof the Investors may thus:− sell their Rexel shares into the market subject to a maximumof €10.0 million per rolling 30 day period;− initiate (i) the sale of Rexel’s shares through a block tradewith estimated proceeds of at least €75 million; or (ii) anunderwritten secondary public offering of Rexel’s shareswith estimated proceeds of at least €150 million, providedthat the other Investors may participate in such blocktrades or offerings and that no underwritten secondaryoffering has occurred in the preceding six months.PAGE 186 | REXEL 2008