ASML announces capital repayment totaling €960 million, reverse stock split

By Lisa Kerner

Charlotte, N.C., May 31 - ASML Holding NV plans to sell an inaugural eurobond benchmark issue and to use the proceeds to fund part of the roughly €960 million, or €2.04 per share, returned to shareholders in combination with a 8-for-9 reverse stock split.

The intended eurobond offering is expected to take place in the coming weeks. ASML said the most efficient way to return cash to shareholders within the Dutch regulatory tax environment is through a capital repayment.

"ASML has clearly shown its ability to be profitable throughout industry cycles and generate cash above its operational needs," chief financial officer Peter Wennink said in a company news release.

"We are committed to return excess cash to our shareholders and to regularly review the efficiency of our capital structure. We have concluded that our debt-to-equity ratio could be further optimized and have undertaken initiatives to address that issue. We feel that the capital repayment combined with a reverse stock split will allow us to create additional value for our shareholders."

ASML will hold an extraordinary general meeting of shareholders on July 17 to vote on the proposed capital repayment and share reduction plan. The capital repayment and the share reduction plan are expected to be complete before the end of September.

Based in Veldhoven, the Netherlands, ASML provides lithography systems to the semiconductor industry.

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