Ence buys back 7,740,390 of its company shares, equivalent to 3% share capital; shareholder yield to rise to 14%

Kendall Sinclair

MADRID , September 24, 2012 (press release) – The initiative improves Ence’s shareholder yield by 3%

• The company estimates that Ence’s share dividend yield, which has risen to 14%, will maintain its good progress thanks to its treasury-share acquisition and redemption programme underway.

Energía y Celulosa – has reduced its capital by 7,740,390 shares, equivalent to 3% of the company’s share capital, following the agreement of the Extraordinary General Shareholders Meeting held on 24 July. The process of capital reduction will be concluded during this week after having notified the security depository institutions to proceed with their redemption, as well as notifying Iberclear.

In May, Ence distributed one bonus share for every 26 securities held by shareholders and €0.07/per share in cash, to which the one bonus share for every 37 shares in circulation distributed last August needs to be added. Valued at the average quoted price for the year, these issues are equivalent to €0.181/share, representing growth of 81% over that delivered in 2011 and a dividend yield of 11%. Ence’s shareholder yield rises to 14% once the effect of the current share buy-back is included.

Ence expects to sustain its positive performance in shareholder yield in the coming months thanks to the share buy-back programme initiated recently, considering this to be the best investment for shareholders given that the current market and quoted prices offer a good opportunity for creating value and contributing to yield for shareholders.

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