FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
Report on Form 6-K dated September 29, 2010
Magyar Telekom Plc.
(Translation of registrant’s name into English)
Budapest, 1013, Krisztina krt. 55, Hungary
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
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Investor Release |
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Magyar Telekom |
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IR contacts: |
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Position: |
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Telephone: |
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E-mail address: |
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Szabolcs Czenthe |
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Director, Capital markets and acquisitions |
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+36-1-458-0437 |
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czenthe.szabolcs@telekom.hu |
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Rita Walfisch |
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Head of Investor Relations |
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+36-1-457-6036 |
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walfisch.rita@telekom.hu |
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Linda László |
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IR manager |
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+36-1-457-6084 |
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laszlo.linda@telekom.hu |
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Márton Peresztegi |
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IR manager |
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+36-1-458-7382 |
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peresztegi.marton@telekom.hu |
Magyar Telekom to launch share allocation program
Budapest — September 29, 2010 - Magyar Telekom (Reuters: NYSE: MTA.N, BÉT: MTEL.BU and Bloomberg: NYSE: MTA US, BÉT: MTELEKOM HB), the leading Hungarian telecommunications service provider today announces the decision by its Board of Directors to launch a share allocation program under which Magyar Telekom shares will be awarded to the Company’s best performing employees. This program will replace and be equivalent in value to the bonus budget set aside for 2010 (equivalent to a 1.5% wage increase for 2010).
In total, about 858,000 treasury shares will be distributed among the best performing Magyar Telekom employees in December 2010. The total number may change according to the actual market value of the shares at the grant date. The shares will vest at year-end 2012 but will also yield a dividend up to 2012.
Magyar Telekom’s aim is to reconcile employee and Company interests while simultaneously strengthening loyalty and ownership perspective among key employees. Furthermore, from a financial perspective, granting Company shares, rather than distributing the bonus budget equivalent to a 1.5% wage increase, is advantageous for the Company as its free cash flow implications are more favourable. The improvement in free cash flow for 2010 is expected to be approximately HUF 800 million compared to distributing the bonus budget.
This investor news contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, our Annual Report on Form 20-F for the year ended December 31, 2009 filed with the U.S. Securities and Exchange Commission.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Magyar Telekom Plc. |
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(Registrant) |
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By: |
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Szabolcs Czenthe |
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Director |
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Capital Markets and Acquisitions |
Date: September 29, 2010