VALLOUREC: Vallourec pursues its employee shareholding policy

        VALLOUREC: Vallourec pursues its employee shareholding policy   Press release  July 2014  www.vallourec.com  Vallourec pursues its employee shareholding policy  Boulogne-Billancourt, 30 July 2014 - Vallourec announces the implementation of a new employee share ownership offering for the seventh consecutive year.  This offering, called "Value 14", concerns a maximum of 1,920,000 newly-issued shares representing 1.49 % of the company's share capital on the date of  this  press release. It  will be open  to Vallourec employees  in 13  countries^[1],  representing approximately 94.5% of the employees of the Group.  The six previous "Value" offerings  generated a high participation rate  among  Group employees and were all very successful. Employee shareholders today hold 6.46% of  Vallourec's share  capital and  are represented  on the  Supervisory  Board.  Based on  the indicative  calendar  for the  offering, the  share  reservation  period will be open  to employees from  15 September 2014  to and including  3  October 2014. The subscription price should be determined on 7 November  2014.  The subscription/revocation period is  scheduled to take place  from 10 to  14  November 2014 inclusive and the capital increase on 16 December 2014.  Details of the "Value 14" operation are described hereafter.                                       ***  Details of the conditions for the "Value 14" employee share ownership offering  Beneficiaries Subject to any locally required  authorizations, the "Value 14" offering  will  be open to employees (and beneficiaries and similar parties) of Vallourec  and  of those of its subsidiaries over which it holds, directly or indirectly,  the  majority of the share capital and which have registered offices in one of  the  following countries: Germany, Saudi Arabia, Brazil, Canada, China, the  United  Arab Emirates, the United States, France, India, Malaysia, Mexico, the  United  Kingdom and  Singapore,  i.e.  approximately  94.5%  of  the  Group's  current  employees.  Indicative calendar for the offering  Based on the indicative calendar, the reservation period will be open from  15  September 2014 to and including 3 October 2014. The subscription price will be equal to the  average opening price  of Vallourec's shares  on Euronext  Paris  during  the   twenty  trading   days   preceding  the   date  on   which   the  subscription/revocation period  is  established,  discounted by  20%  for  the  classic formula and  15 %  for the  leverage formula,  and rounded  up to  the  nearest euro cent. The  subscription price is expected  to be determined on  7  November 2014.  The  subscription/revocation  period would  be  open  from  10  November 2014 to and including 14  November 2014. The capital increase  should  take place on 16 December 2014.  Share offering  The "Value  14" is  an offering  of a  maximum of  1,920,000 ordinary  shares,  representing close to 1.49% of the company's share capital on the date of this press release. The new shares will be entitled to dividends as from 1  January  2014.  Subscription procedures  Two formulas  will  be  offered  in France:  a  classic  formula  (i.e.  share  subscription with a  20% discount,  supplemented by  an employer  contribution  through an FCPE), and a leverage  formula (i.e. share subscription with a  15%  discount, supplemented by an employer contribution through an FCPE).  Outside of France, only a leverage formula will be offered.  The leveraged formula proposed within the framework of the "Value 14" offering is intended  to guarantee  the employee's  personal contribution  and the  net  employer's contribution (for those countries in which the contribution is made by means of  a cash  payment) which  he/she receives  under the  terms of  the  "Value  14"  offering  (subject  to  the  effects  of  foreign  exchange  rate  fluctuations, any applicable  tax and  social security  contributions and  the  consequences of  a potential  unwinding of  the exchange  transaction) and  to  allow him/her to benefit from a multiple of the protected average increase  of  the share  price compared  to the  reference  price between  the date  of  the  capital increase and 1^st July 2019. The structure of this formula will differ from one jurisdiction  to another in  order to comply  with local  regulations  and/or to take advantage of specific tax provisions that may be more favorable for employee subscriptions, while  ensuring comparable economic advantages  to  all eligible employees (in particular through  a specific leveraged FCPE or  a  direct  subscription  for  shares  (or   a  cash  deposit  by  the   employee)  supplemented  by  the  grant  of  stock  appreciation  rights  (SARs)  by  the  employer). In France, Germany, Brazil, the United Arab Emirates, India, Mexico and the  United Kingdom,  the leveraged  formula will  be supplemented  by  an  employer contribution in cash also  invested in the specific leveraged  FCPEs,  and in  Saudi  Arabia^[2], Canada,  China,  the United  States,  Malaysia  and  Singapore by a grant of free shares, newly issued or existing shares (up to  a  maximum of 15,000 shares), or a  deferred cash bonus. Eligible employees  will  be informed of the terms and conditions that apply in their jurisdiction.  Lock-up period  Shares or FCPE units subscribed for by the employees or the cash deposits made by employees, as  the case  may be,  will be  unavailable until  30 June  2019  inclusive except in cases of early release. The Supervisory Board of each FCPE holding shares will exercise  the voting rights  associated with such  shares.  The financial institution  has undertaken to  vote in the  same manner as  the  Supervisory Board of the leveraged FCPE being offered to French, UK and German employees.  Hedging The financial  mechanisms  underlying  the leverage  formula  require  hedging  transactions  to  be  carried  out  on  the  open  market  by  the   financial  institutions that structure  the formula.  These hedging  transactions may  be  carried out  by these  institutions  as from  the  publication of  this  press  release and  during the  duration  of the  transaction. Based  on  Vallourec's  subscription assumptions,  the impact  of such  transactions on  the price  of  Vallourec shares is expected to be limited.                                       ***  About Vallourec  Vallourec is a world leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications.  With over 24,000 employees, integrated manufacturing facilities, advanced  R&D  and a  presence in  more than  20 countries,  Vallourec offers  its  customers  innovative global solutions to meet the energy challenges of the 21st century.  Listed on Euronext in Paris (ISIN code: FR0000120354, Ticker VK) and  eligible  for the  Deferred  Settlement  System  (SRD), Vallourec  is  included  in  the  following indices: MSCI World Index, Euronext 100 and SBF 120.  In the United States, Vallourec has  established a sponsored Level 1  American  Depositary Receipt  (ADR) program  (ISIN code:  US92023R2094, Ticker:  VLOWY).  Parity between ADR and a Vallourec ordinary share has been set at 5:1.  www.vallourec.com Follow us on Twitter @VallourecGroup  For further information, please contact Investor relations              Press relations Etienne Bertrand                Laurence Pernot Tel: +33 (0)1 49 09 35 58       Tel: +33 (0)1 41 03 78 48 etienne.bertrand@vallourec.com  laurence.pernot@vallourec.com  -------------------------  [1] Germany, Saudi Arabia, Brazil, Canada, China, the United Arab Emirates, the United States, France, India, Malaysia, Mexico, the UnitedKingdom and Singapore.  [2] Subject to the prior approval of the local market authority  20140730_Press Release Vallourec Value 14 PDF  ------------------------------------------------------------------------------  This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: VALLOUREC via Globenewswire HUG#1843710  
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