Gränges offers part-ownership program for employees

Gränges offers part-ownership program for employees The Board of Directors of Gränges AB has today decided to propose that a Special General Meeting of shareholders approve a part-ownership program for employees within the Gränges Group. It is proposed that the offer, which is divided into two programs, be directed partly to all Gränges' employees in Sweden, Denmark and Finland, who will be invited to subscribe for convertible debentures, and partly to employees in Group subsidiaries outside the countries named above, who will be invited to purchase warrants. The warrants offer will be implemented in those countries where national laws, administrative conditions and financial aspects so allow. The Board's proposal means that Gränges AB will issue convertible debentures to all of the Group's employees in Sweden, Denmark and Finland in a maximum nominal amount of MSEK 100, resulting in a dilution effect of approximately 2.2 percent on full conversion, based on the current share price. The debentures will carry an annual interest rate corresponding to the STIBOR minus 0.50 percentage points and will become due for payment on July 30, 2004, unless conversion has already been made. Conversion may be effected as of June 6, 2001 through July 2, 2004. The conversion price shall correspond to about 124-129 percent of the average market price for the Gränges share during the period November 2 through November 6, 1998. Each person entitled to subscribe may subscribe for at least 100 convertibles corresponding to approximately SEK 11,500 and 100 shares after conversion and at most 6,000 convertibles, corresponding to approximately SEK 690,000 and 6,000 shares after conversion. The proposed guaranteed allotment is 250 convertibles, corresponding to approximately SEK 28,750 and 250 shares after conversion. The proposed subscription period will extend from November 16 to November 27, 1998, with payment not later than December 21, 1998. The proposal also means that a maximum of 0.7 million warrants will be issued resulting in a maximal dilution effect of 1.9 percent on full conversion, based on the current share price. Each warrant will entitle the holder to subscribe for one new Gränges share during the period June 6, 2001 to July 2, 2004. The subscription price will correspond to about 124-129 percent of the average market price for a Gränges share during the period November 2 to November 6, 1998. The price of the warrants will be calculated by Enskilda Securities based on the model normally applied for such calculations. Allotment of the warrants will be based on the principles applied with regard to the convertible debentures. The Board's reason for making this proposal, and thereby deviating from the preferential rights of shareholders, is to use the part-ownership program to provide employees with an opportunity to participate in Gränges' development. Giving employees the opportunity to engage in personal, long-term ownership is expected to increase their commitment, stimulate a broader engagement in the Group's different operations and strengthen loyalty to the company. All these factors are highly important to the company's development and as such are beneficial to its shareholders. A final decision with regard to the program will be made at the Special Meeting of Gränges AB shareholders to be held at 5.00 p.m. on Thursday, October 29, 1998, at Industrihuset, Storgatan 19 in Stockholm. Notice of the Meeting will be published on October 12 in the following Swedish newspapers: Dagens Nyheter and Svenska Dagbladet. The notice will also appear on Gränges' web site on the Internet: www.graenges.se The complete Board proposal for approval in connection with the program described above, plus the Board's report and the auditors' statement will be available for inspection at Gränges' head office in Stockholm as of October 22, 1998. Stockholm, October 1998 GRÄNGES BOARD OF DIRECTORS For further information, please contact Ulf Berglund, Executive Vice President Chief Financial Officer, tel: +46-8-459 59 12, or Cecilia Lager, Vice President Investor Relations & Communication, tel: +46-8-459 59 41. Gränges is an international industrial group focused on value-added products based on aluminium and plastics. The products range from extrusions, heat transfer material and foil to components and systems in plastics to the transport industry. The group is one of Europe leading companies within its field with customers in the transport, engineering, construction and packaging industries. Gränges is quoted on the Stockholm Stock Exchange "O-list". Visit Gränges web site on the Internet: www.graenges.se