Peab proposes new convertible debentures to all employees in Peab AB and Peab Industri AB

For Peab AB as well as Peab Industri AB their staff is the most important resource. The boards of Peab AB and Peab Industri AB have therefore passed a decision to issue and offer convertible debentures to all employees of the Peab group. The issues and offers will be raised for approval at the Annual General Meeting of shareholders on 16 May 2007.

The employees are contained today within the same group, the Peab group. Peab Industri AB will be distributed to Peab AB’s shareowners in September 2007. Even after the distribution a well functioning cooperation between the groups is important. Against this background then, the board in both companies has come to the decision it is also in the interest of the shareholders, that all employees be given the opportunity to participate in the offer of convertible debentures in Peab AB and the equivalent offer in Peab Industri AB.

The boards of Peab AB and Peab Industri AB have also come to the decision that it is their intention to direct similar offers in the coming years, provided that decisions are implemented at the Annual General Meetings for the respective years. The coming offers will primarily direct themselves towards those who are employed according to the previous years offers.

Peab AB
Peab AB has decided to propose to the Annual General Meeting to issue convertible debentures to the face value all in all of SEK 600 million at the most, provided that the Annual General Meeting is in approval on 16 May 2007. Peab AB will issue 12 million convertible debentures at the most.

The convertible debentures will extend from 1 December 2007 until 30 November 2012. Every convertible debenture can be converted, during a part of the month of December 2011, 2010 and 2012, to a B series share in Peab AB. The offer of participation in the program will be give to all employees in Peab AB and Peab Industri AB on market conditions, and every employee may subscribe for a minimum of 200 convertible debentures. Employee’s subscriptions will take place during the period of 26 November until 12 December 2007.

By the suggested issues Peab will provide all employees with the opportunity of taking part in the development of the company, which will lead to participation and engagement.


With the object of neutralizing any possible dilution effect, it is the opinion of the board of Peab AB, to propose, to the Annual General Meeting, a power of repurchase that even includes the right to buying back and later cancel as many B-shares on the market that can be issued in connection with the convertible debentures be utilisable for conversion.

Furthermore it is the opinion of the board of Peab AB to suggest to the coming Annual General Meetings to decide on similar convertible debenture programs to be performed in 2008, 2009 and 2010. The aim is that such programs are to amount to SEK 100 million each at the most and may be preliminarily offered to persons who are employees of the Peab group after the offer of the preceding program. The issue of new convertible debentures lies in the assumption of the decision of such, every year respectively, by the Annual General Meeting of shareholders of Peab AB

Further information follows on Peab AB’s summons to the Annual General Meeting. The full conditions for the convertible debentures will be made public at least two weeks before the Annual General Meeting.

Peab Industi AB
The board of Peab Industri has come to the decision to issue convertible debentures to the face value all in all of SEK 400 million at the most, provided that the Annual General Meeting is in approval on 16 May 2007. Peab Industri AB will issue 6.7 million convertible debentures at the most.

In a similar fashion to Peab AB then, the convertible debentures will extend from 1 December 2007 until 30 November 2012. Every convertible debenture can be converted, during a part of the month of December 2011, 2010 and 2012, to a B series share in Peab Industri AB. The offer of participation in the program will be give to all employees in Peab Industri AB and Peab AB on market conditions, and every employee may subscribe for a minimum of 200 convertible debentures. Employee’s subscriptions will take place during the period of 26 November until 12 December 2007.

By the suggested issues Peab Industri will provide all employees with the opportunity of taking part in the development of the company, which will lead to participation and engagement.

With the object of neutralizing any possible dilution effect, it is the opinion of the board of Peab Industri AB, to propose, to the Annual General Meeting, a power of repurchase that even includes the right to buying back and later cancel as many B-shares on the market that can be issued in connection with the convertible debentures be utilisable for conversion.


Furthermore it is the opinion of the board of Peab Industri AB to suggest to the coming Annual General Meeting to decide on similar convertible debenture programs to be performed in 2008, 2009 and 2010. The aim is that such programs are to amount to SEK 50 million each at the most and may be preliminarily offered to persons who are employees of the Peab group after the offer of the preceding program. The issue of new convertible debentures lies in the assumption of the decision of such, every year respectively, by the Annual General Meeting of shareholders of Peab Industri AB.

Further information follows on Peab Industri AB’s summons to the Annual General Meeting. The full conditions for the convertible debentures will be made public at least two weeks before the Annual General Meeting.

The Equity Market Committee has furthermore stated that de cross-shareholdings feature in the offer to the employees is in accordance with good custom on the share market.


- “Our employees are a very valuable resource. Offering them a further possibility to part ownership I believe that we can raise the interest and motivation. Everybody will now have the possibility of participating in the increase in value that they participate in creating. The ambition is even to allow future employees the opportunity of participation in suggested future program, which will be important in attracting new future employees, says Peabs MD, Mats Paulsson in a commentary.



For further information contact:
Mats Paulsson, MD Peab +46 431-89000
Mats Leifland, deputy MD Peab +46 733-37 10 06
Gösta Sjöström, information manager Peab +46 733 37 10 10

Previous press releases from Peab are available at www.peab.com