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FCC collects 650 million euro in outstanding debt from Spanish City Governments

31/05/2012

FCC collects 650 million euro in outstanding debt from Spanish City Governments

  • FCC, the Citizen Services group, expects to collect 1.4-1.5 billion euro in total
  • Regional governments will commence payment of outstanding debts after the municipal programme
  • The Board will ask the shareholders to approve a supplementary dividend of 0.65 euro per share

 

FCC collects 650 million euro in outstanding debt from Spanish City Governments

The Spanish government-approved plan to enable local and regional governments to pay suppliers is under way. Speaking at a press conference prior to the Annual Shareholders' Meeting of FCC, Chairman and CEO Baldomero Falcones said the company has already collected 650 million euro owed by local governments.

Mr Falcones also reported that FCC, the Citizen Services group, expects to collect the remainder of its outstanding debt from other public administrations, totalling 1.4 to 1.5 billion euro, in the coming weeks. "These payments will enable FCC to reduce debt and will have a notable impact on the company's value since the impact on leverage will be enhanced by the reduction in financial expenses."

Mr Falcones also spoke about the economic crisis affecting Spain and the European Union, and defended the need for a counter-cyclical policy at European level which makes greater use of the Structural Funds and the Cohesion Fund and for a stronger role on the part of the European Investment Bank to finance major projects, especially in countries where austerity measures have been imposed.

He also expressed his conviction that Spain would surmount the current situation and lay the foundations for a new period of balanced, stable growth. Mr Falcones emphasized the imperative of seeking formulas which facilitate the integration of young people into the labour market, stating: "We must achieve a structural and cultural change while also promoting competition and entrepreneurship."

Supplementary dividend of 0.65 euro per share

This morning's press conference was a prelude to this afternoon's Shareholders' Meeting in Barcelona. At the meeting, the Board of Directors of FCC will propose the payment of a supplementary dividend of 0.65 euro per share. Combined with the interim dividend of the same amount that has already been paid, this will bring total remuneration to 1.30 euro per share and the total shareholder return in 2011 to 9.2%.

The Board will also propose the re-appointment as directors of B-1998, represented by Esther Koplowitz, and of César Ortega.

Other items on the agenda include a proposal to reappoint Deloitte as auditor and to approve the financial statements and directors' report for 2011, when the Group obtained net profit of 108 million euro.
The agenda also includes two issues which are notable in terms of transparency: the annual report on director remuneration will be put to an advisory vote, and the corporate website will be proposed for approval as the official medium of communication with shareholders.

 Shareholders will also be asked to amend the Articles of Incorporation and the Rules of the General Meeting with a view to adapting them to the changes in company law.
 

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