The Board of Directors’ proposal for a share split and redemption procedure
February 2, 2005
Stockholm, Sweden, February 2, 2005: The financial position of the Group is strong due to a number of years with strong cash flow performance and the recent disposal of the professional electric tools business for a total price of MSEK 4 705. It is the Board of Directors’ opinion that the Group’s current financial position is more than adequate to support the Group’s strategy and financial targets.
In order to adjust the Group’s balance sheet to a more efficient structure, the Board of Directors proposes to the Annual General Meeting a share redemption procedure, whereby every share is split into 3 ordinary shares and 1 redemption share. The redemption share is then automatically redeemed at SEK 20.00 per share. This corresponds to a total of MSEK 4 192. Combined with the proposed dividend of SEK 9.00 per share, shareholders will receive MSEK 6 078
The redemption is subject to approval at the Annual General Meeting 2005 on the following:
- The articles of association are amended. The nominal value of each share is reduced to SEK 1.25. Redeemable C shares are introduced.
- Reduction of the share capital through redemption of 139 899 016 A shares and 69 703 168 B shares, and reduction of the share premium reserve.
- A directed issue of new C shares to a bank in order to speed up the redemption procedure.
- Reduction of the company’s share capital through redemption of all C shares, subject to court approval.
Trading in the redemption shares is estimated to take place on Stockholmsbörsen on May 17 – June 7, 2005, after which the redemption shares will automatically be redeemed. The payment of the redemption price is estimated to be made around June 15, 2005
For further information please contact:
Hans Ola Meyer, Chief Financial Officer
+46 (0)8 743 8292 or +46 (0)70 588 8292
Annika Berglund, Senior Vice President Communications
+46 (0)8 743 8070 or +46 (0)70 322 8070
Atlas Copco is an international industrial Group with its head office in Stockholm, Sweden. In 2004, the Group had revenues of approximately BSEK 49, with 98% of revenues outside Sweden, and about 27 000 employees. The Group produces and markets compressed air equipment and generators, construction and mining equipment, industrial tools, and assembly systems and offers related service and equipment rental. The Atlas Copco Group includes famous brands such as Atlas Copco, RSC, and CP. More information can be found on www.atlascopco-group.com.