Swedbank’s Extraordinary General Meeting approved the SEK 12.4 billion rights issue
2008-11-25 Back
On 27 October 2008 the Board of Directors of Swedbank AB (publ) ("Swedbank") announced a SEK 12.4 billion new issue of preference shares with preferential subscription rights for existing shareholders, subject to the approval of an Extraordinary General Meeting (the "EGM").The chairman Carl Eric Stålberg started the EGM by reiterating the rational behind the rights issue. Among other things he restated that it is important to stress that Swedbank is a profitable bank with sound capitalisation, however, it is in the best interest of all stakeholders to take proactive and decisive action in this volatile and uncertain market environment.
This transaction will result in Swedbank's capitalisation comparing favourably to other large European banks and puts the bank in strong position. In addition, the strong support from Swedbank's major shareholders represents an important vote of confidence in the bank.
The Board continues to be committed to the existing dividend policy.
Today's EGM resolved, in accordance with the Board of Directors' proposal, to:
Approve the Board of Directors resolution on a new issue of not more than 257,686,706 preference shares with preferential subscription rights for the shareholders. The rights issue is being made on the basis of one (1) new preference share for every two (2) existing ordinary shares at a subscription price of SEK 48 per share. Record day for participating in the rights issue is 28 November 2008.
Amend the Articles of Association and thereby introduce a new class of shares which has preferential right to dividends (preference shares), amend the Articles of Association's limits regarding the bank's share capital and number of shares, and to declare that all currently issued shares shall be ordinary shares.
A summary of the rights issue, the timetable for the rights issue, and the amendments to the Articles of Association are presented on Swedbank's website.
Detailed terms of the new issue of preference shares will be included in the prospectus that will be made public on or about 1 December 2008.
