Garmin guides its way to Switzerland and higher returns
Posted by By Gary Roethenbaugh at 18 March, at 00 : 00 AM Print
Gaining almost 4% in recent days, shares in Garmin have traded high on the news that the company’s annual dividend of US$1.50 per share is up 100% on the 2009 dividend of 75 cents.
With the increased dividend, the company also announced plans to move its place of incorporation from the Cayman Islands to Switzerland.
The planned move to Switzerland is cited as the reason that the company is paying its annual dividend in April instead of December, as it has done in the past.
"Following a thorough review, we have determined that it is in the best interest of Garmin and its shareholders to change the jurisdiction of incorporation of our group parent company to Switzerland," said Dr Min Kao, Chairman and CEO of Garmin Ltd. "Switzerland is centrally located in Europe in close proximity to our major Western and Eastern European markets."
"We believe the change of our jurisdiction of incorporation will enhance our global business operations and reputation, consistent with our status as an international company with significant operations in Asia, North America, as well as Europe," said Kao. "Switzerland also offers a well-developed corporate, legal and regulatory environment with an extensive network of tax treaties with other countries."
Kao added that the Swiss office would provide a base for expanding corporate functions in Europe, and a "more favourable structure" to acquire or partner with European businesses.
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