Aegon is today announcing that it will repurchase 14,488,648 common shares to neutralize the dilutive effect of the 2013 final dividend paid in shares.
During the dividend election period, which ran from Friday May 30 to Friday June 13, 2014, shareholders were given the opportunity to choose between receiving the final dividend of EUR 0.11 per common share in cash or common shares. 40% of shareholders elected to receive the stock dividend. The remaining 60% opted for cash dividend. As a result, 14,488,648 new common shares will be issued on June 20, 2014. The number of outstanding common shares will remain unchanged because Aegon will repurchase the same number of shares that were issued.
Shareholders who elected a stock dividend will receive one new Aegon common share for every 59 common shares held. The stock fraction is based on Aegon's average share price as quoted on the Euronext Amsterdam Stock Exchange, using the high and low of each of the five trading days from June 9 up to and including June 13, 2014. The stock dividend and the cash dividend are approximately equal in value.
Aegon has committed itself to the repurchase of the common shares by engaging a third party to execute the transactions on its behalf. The transactions will commence on June 20, 2014, and are expected to be completed on or before July 18, 2014. The common shares will be repurchased at a maximum of the daily volume-weighted average price. Aegon will provide a weekly update regarding the transactions on www.aegon.com/sharebuyback.