General meeting of Olav Thon Eiendomsselskap ASA

At the general meeting of Olav Thon Eiendomsselskap ASA on 24 May 2023, Folketrygdfondet will vote against Item 7a and Item 7b for the following reasons:

Item 7a: Authorisation to acquire the company’s own shares
Buying back shares can be a good supplement to paying dividends. However, Olav Thon Eiendomsselskap ASA is a very illiquid share with a limited trading volume in the market and inefficient pricing. Buying back shares at these discount levels also favours those who are not selling, and Folketrygdfondet therefore believes it is a poorer alternative than dividends that would have treated all shareholders equally. At the same time, it further reduces free flow.

Item 7b: Authorisation to increase the share capital
The share is traded at a substantial discount in relation to underlying values, and share issues at these levels could have unfortunate diluting effects for current shareholders.
 

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