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The Extraordinary General Meeting resolved on the redemption proposal of SEK 561 million

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At the Extraordinary General Meeting of Teleca AB held on June 20, 2007, the Board’s proposal was approved to execute an automatic redemption through a share split of 2:1, of which one share is redeemed by Teleca for SEK 9 per share. Record date for the share split and right to redemption shares was set at July 12, 2007. The final date for trading in the Teleca share including the right to receive redemption shares will thus be July 9, 2007. Payment of the redemption amount is expected to occur on August 13, 2007.

The EGM resolved, in accordance with the proposal of the Board, to carry out a redemption procedure, including amendments to the Articles of Association, a share split, a reduction in the share capital through retirement of shares and increase in the share capital through a bonus issue. The decision essentially entails the following:
Each share will be split into two shares (2:1 share split) of which one will be a designated redemption share and will be redeemed for SEK 9. The number of shares of each class as stated in the Articles of Association has been adjusted. The record date at VPC for implementation of the share split is July 12, 2007.

The Company's share capital will be reduced by SEK 56,139,729.30 (the reduction amount) through the redemption of 655,000 class A-shares and 61,722,477class B-shares, each with a quota value of SEK 0.90 (after share split). The shares to be redeemed are the shares which after the implementation of the share split in accordance with above are named redemption shares. The purpose of the reduction of the share capital is repayment to the shareholders. For each redeemed share (irrespective of class), a redemption price of SEK 9 is to be paid (i.e. SEK 8.10 per share in excess of the quota value). The total redemption amount then amounts to SEK 561,397,293. The Company's share capital is increased by SEK 56,139,729.30 by way of a bonus issue from non-restricted equity. No new shares will be issued in connection with the increase of the share capital.

For further information, please contact:
• Christian Luiga, CFO, Teleca AB, mobile +46 703 75 16 04
• Mattias Stenberg, Investor Relations Manager, Teleca AB, mobile +46 706 11 96 16

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