TRANSCOM IS CURRENTLY INVESTIGATING A POSSIBLE REDOMICILIATION TO SWEDEN

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29 November, 2011

  • Transcom’s Board of Directors is currently investigating a move of the legal domicile of the publicly listed parent of the Transcom Group from Luxembourg to Sweden.
  • The redomiciliation would, subject to inter alia shareholder approval, be executed through a statutory cross border merger between Transcom WorldWide S.A. and a Swedish subsidiary (“Swedish NewCo”) which would become the new publicly listed parent of the Transcom Group.
  • The intention would be for the new Swedish parent company of the Transcom group to be a public limited liability company with one class of shares only.
  • Through the statutory merger, the current parent company Transcom Worldwide S.A. would be absorbed by the Swedish NewCo. All assets and liabilities of Transcom WorldWide S.A. would pass to the Swedish NewCo, the shares of which would be listed on NASDAQ OMX Stockholm.
  • The majority of Transcom’s shareholders are Swedish. As such, a statutory merger would align Transcom’s legal domicile with the domicile of its owners.
  • Further analysis is being made before the Board of Directors will give a recommendation, including an assessment of tax consequences.
  • Based on preliminary analysis it is expected that a redomiciliation could result in non-recurring costs of approximately EUR 4 million of which a larger part would be non-cash costs as a result of write downs of tax assets.

Transcom WorldWide S.A. (the “Company”) has been listed on NASDAQ OMX Stockholm since September 6, 2001. Approximately 97 percent of the Company’s shareholders are based in Sweden and the share of the Company’s capital that is held by shareholders in Sweden exceeds 80 percent.

As such, the Board of Directors of Transcom believes that a redomiciliation to Sweden would be a logical step in order to align the Company’s domicile with that of its owners. Following a redomiciliation to Sweden, general meetings of the shareholders would be held in Sweden rather than in Luxembourg, thus facilitating shareholder participation at general meetings. Further, following a change of domicile, Transcom would become subject to the Swedish regulatory framework applicable to Swedish listed companies, including the Swedish Code on Corporate Governance. From a shareholder tax perspective, no immediate tax costs would be expected for the shareholders in Sweden.

If the Board of Directors decides on a redomiciliation to Sweden, the redomiciliation and the statutory merger will be subject to inter alia shareholder approval, and would be expected to be concluded during the first half of 2012.

Financial and legal advisors

SEB Enskilda is acting as financial advisor to Transcom, Advokatfirman Cederquist and NautaDutilh Avocats Luxembourg are acting as legal advisors to Transcom and Skeppsbron Skatt is acting as tax advisor to Transcom in the redomiciliation.

For further information, please contact:

Johan Eriksson, President and CEO                                                   +46 8 120 800 22

Aïssa Azzouzi, CFO                                                                               +352 27 755 021

Stefan Pettersson, Head of Investor Relations                                   +46 70 776 80 88

About Transcom

Transcom is a global outsourced service provider entirely focused on customers, the service they experience and the revenue they generate. Our customer management and credit management services are designed to strengthen our clients’ customer relationships and secure their revenue streams.

Our broad service portfolio supports every stage of the customer lifecycle, from acquisition through service, retention, cross and upsell, then on through early and contingent collections to legal recovery.  Expert at managing both customers and debt, we make a positive contribution to our clients’ profitability by helping them win customers, maintain their loyalty and secure their payments.

And, while our services are designed to maximize revenue, our delivery operations are built to drive efficiency.  Through our global network we can provide service in any country where our clients have customers, accessing the most appropriate skills and deploying the best communication channels in the most cost effective locations.

Every day we handle over 600,000 customer contacts in 33 languages for more than 350 clients, including brand leaders in some of today’s most challenging and competitive industry sectors. The experience we gain is used to constantly refine our service portfolio and business processes, allowing us to respond quickly to changing market conditions and client requirements.

Transcom WorldWide S.A. Class A and Class B shares are listed on the Nasdaq OMX Stockholm Mid Cap list under the symbols ‘TWW SDB A’ and ‘TWW SDB B’.   

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