BILTHOVEN, THE NETHERLANDS, May 21, 2007 --- ASM International N.V. (NASDAQ: ASMI and Euronext Amsterdam: ASM) announced today that it is completing the buyback of USD 14.5 million principal amount of its 5¼% Convertible Subordinated Notes due 2010 and USD 5.6 million principal amount of its 4¼% Convertible Subordinated Notes due 2011 with approximately € 20.5 million of the € 24.0 million 2006 final cash dividend received from its subsidiary, ASM Pacific Technology, Ltd (ASMPT). The Company received the funds on April 30, 2007.
To demonstrate its commitment to increasing shareholder value, ASM International announced in November 2006 that it would use ASMPT cash dividends over at least the three year period, 2007 to 2009, for one or more of the following: repurchase of common shares, buy back of outstanding convertible notes, cash dividends and to a limited extent purchase of additional shares of ASM Pacific Technology. The ASMI Management and Supervisory Boards will determine the most appropriate use or combination of uses of the funds at the time each ASMPT cash dividend is received.
The convertible notes' buyback strengthens the Company's financial position by lowering net debt, decreasing interest charges, and reducing potential share dilution related to conversion of the notes. It also incurs a one-off charge to the income statement for the premium paid over the principal amount. Consequently, the charge to the 2007 second quarter results is expected to be approximately € 6.0 million. Although the item will be included in the US GAAP financials, it will be excluded from calculations of front-end profitability versus 2007 targets.
The Company will use the remaining amount of approximately € 3.5 million to repurchase common shares in relation to its stock option plan.
On May 2, 2007, the Company announced that it intends to pay a cash dividend to its shareholders in 2007 in the form of an interim dividend. Subject to discussion at the ASMI annual general meeting of shareholders on May 22, 2007, the intended dividend of € 0.10 per share would be payable in early September 2007.