"ASSA ABLOY seeks to attain an as wide spread participation as possible among its employees and management. We firmly believe that a participation creates motivation and strengthens the feeling of belonging, increases the interest in ASSA ABLOY and its operations. It also gives the employees an opportunity to benefit from the development of the Group. The earlier incentive programs have in a striking way created a basis for a unanimous view on the importance of the continuous development of profitability and common goals of ASSA ABLOY", says Chairman Georg Ehrnrooth.

 

The new incentive program, Incentive 2004, has been prepared to ensure participation for the new employees in the Group since 2001. Incentive 2004, which in all material respects will be structured in accordance with the program of 2001, will be open to approximately 22,000 of the Group's employees in approximately 15 countries. Pursuant to the program, Group employees will be offered the opportunity to acquire shares at market price in a company especially established for the intended purpose, which company shall subscribe for convertible bonds issued by ASSA ABLOY. It is proposed that the convertible bonds will be issued at a nominal value of up to EUR 100 million with a maturity of five years.

 

The dilution will depend on the ASSA ABLOY share price, which will be established during a measure period of five banking days prior to the date of subscription and payment for the convertible bonds, and the applicable exchange rate (SEK/EUR) but is expected to amount to approximately 2 per cent of the share capital and 1.5 per cent of the total number of votes. The special purpose company will finance its subscription for the convertible bonds by debt financing corresponding to 90 per cent of the nominal value of the convertible bonds and the remainder with capital contributions from the employees' subscription for shares.

 

The full notice to the shareholders' meeting can be downloaded from the attached PDF-file.