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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
15.2. Other amounts recognised in “Share premium” related to the
acquisition of Sogecuatro,
As explained in Note 10, the investment in Sogecuatro was measured at the fair value of the shares given to Prisa
TV; i.e., the closing share price of Mediaset España Comunicación on 29 December 2010. The capital increase was
originally based on the fact that 73,401,870 shares were to be given to Sogecable, increasing share capital.The difference
between the value of the share issue and share price is recognised under “Share premium”.This entailed an increase in
the share premium balance of EUR 42,207 thousand. Also included under this item are capital increase costs, net of the
corresponding tax effect.
15.3. Dividends
As indicated in the Group’s consolidated financial statements for 2011, on 22 February 2012 the Parent’s Board of
Directors resolved to submit for approval by shareholders in ordinary general meeting a proposal to pay out a dividend
amounting to EUR 55,260 thousand with a charge to 2011 profit.The total dividend would be EUR 0.14 per share.
As indicated in the Group’s annual financial statements for 2010, on 23 February 2011, the Parent’s Board of Directors
resolved to submit for approval by shareholders in ordinary meeting a proposal to pay out an extraordinary dividend
amounting to EUR 42,248 thousand with a charge to the Parent’s freely distributable reserves. On 4 May 2011, both
dividends, for an amount of EUR 140,160 thousand, were paid, equivalent to EUR 0.35 per outstanding share.
15.4. Legal reserves
Under the Spanish Companies Law, 10% of net profit for each year must be transferred to the legal reserve until the
balance of this reserve reaches at least 20% of the share capital.
The legal reserve can be used to increase capital provided that the remaining reserve balance does not fall below 10%
of the increased share capital amount. Otherwise, until the legal reserve exceeds 20% of share capital, it can only be used
to offset losses, provided that sufficient other reserves are not available for this purpose.
The Parent has set aside the full legal reserve required, i.e., EUR 40,686 thousand.This amount is included under “Other
reserves” on the accompanying consolidated statement of financial position.
15.5. Treasury shares
Treasury shares were acquired mainly to cover the company’s commitments in relation to share option plans. As for the
transaction explained in Note 9, the price adjustment led to an additional 2,866,972 of treasury shares valued at EUR
24,012 thousand.These plans are described in Note 21.
At 31 December 2011, the Company has treasury shares of EUR 84,746 thousand valued at cost (31 December 2010:
EUR 84,746 thousand).