Ericsson board authorizes 1:10 ratio change for American Depositary Shares
The Board of Directors of Ericsson has authorized a change in the ratio of its American Depositary Shares (ADSs) as they relate to its Class B-shares. The change is expected to become effective as of October 23, 2002.
One ADS at the new ratio will be issued in exchange for every ten currently outstanding. Following this exchange, one new ADS will represent 10 Class B-shares. This will result in a technical price adjustment to the ADSs corresponding to the ratio change. The current ratio is 1:1.
Ericsson's Board has authorized this change in order to comply with the listing requirements of the Nasdaq National Market. ADS holders will not be charged a fee for this transaction.
After the change, the ADSs will temporarily trade under the interim symbol of "ERICD" for a period of 20 days to assist in making investors aware of the ratio change. Thereafter, the symbol will revert to the original "ERICY" trading symbol.
The ratio change will reduce the number of outstanding ADSs from approximately 1.7 billion to approximately 170 million. Citibank, N.A., as depositary, will notify existing ADS holders as to how to exchange their share certificates. ADS holders will be compensated at a rate to be determined for holdings not amounting to ten or not divisible by ten.
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.