Ericsson transfer of own stock in relation to the Global Stock Incentive Program 2001
The Board of Directors of Ericsson proposes the Annual General Meeting in accordance with previous decisions that the Company to transfer its own stock in order to cover certain payments that occur in relation to the Company's Global Stock Incentive Program 2001 for employees.
The Annual General Meeting in 2001 resolved to approve transfer of own stock in relation to the introduction of a Global Stock Incentive Program. The Resolution comprised, inter alia a right for the Company to transfer a maximum of 31,000,000 shares of series B to cover certain payments, mainly for social security charges that may occur in relation to the Program. According to the resolution by the Annual General Meeting, transfer should take place prior to the Annual General Meeting 2002. No such transfer had been made pursuant to the resolution prior to the Annual General Meeting 2002, at which the Meeting made a new resolution that the Company should be able to transfer own stock, as described above prior to the Annual General Meeting 2003. In accordance with the resolution, 460,535 shares have been transferred up to today's date.
Therefore, the Board of Directors proposes the Annual General Meeting to resolve that the Company shall have the right to transfer, prior to the Annual General Meeting 2004, a maximum of 30,539,465 shares of series B or the lower number of shares, which, as per March 25, 2003, remains of the original 31,000,000 shares, for the purpose of covering certain payments, primarily for social security charges that may occur in relation to the Company's Global Stock Incentive Program 2001. Transfer of the shares shall be effected at Stockholmsbörsen at a price within the, at each time, registered price interval for the share.
Based on the share market value and the Company's financial statement by December 31, 2002, a transfer of 30,539,465 shares would add SEK 186 million to the liquidity and increase the equity ratio by 0.1 percentage points. The transfer of shares, as proposed, would not affect the Company's result, as the consideration would be transferred to the equity. The number of outstanding shares would increase, corresponding to 0.19 percent of the outstanding shares per December 31, 2002. As per today, Ericsson holds 152,993,689 own shares.
The complete proposal of the Board will be available on Ericsson's website, www.ericsson.com, as from 25 March 2003.
Ericsson is a world leader in communications technology and services with headquarters in Stockholm, Sweden. Our organization consists of more than 100,000 experts who provide customers in 180 countries with innovative Solutions and services. Together we are building a more connected future where anyone and any industry is empowered to reach their full potential. Net sales in 2017 were SEK 201.3 billion (USD 23.5 billion). The Ericsson stock is listed on Nasdaq Stockholm and on NASDAQ in New York. Read more on www.ericsson.com.