On January 31, 2008, the Board of Directors of SKF announced a proposal of a mandatory redemption procedure. The background to the Board's proposal to distribute a substantial lump sum amount to shareholders is SKF's strong balance sheet, cash flow and future outlook. Through the procedure the shareholders will receive one new ordinary share and one redemption share, which will be automatically redeemed for SEK 5. The proposal means that SEK 2,277 million will be distributed to the shareholders, in addition to the proposed dividend distribution. The total distribution to shareholders will be SEK 4,554 million. The reason for the proposal, which is subject to a decision at the Annual General Meeting on April 16, 2008, is that it is a simple and easy way to transfer capital to shareholders. Further information about the redemption procedure is provided in a brochure above, which has been compiled to provide further information ahead of the Annual General Meeting.
ISIN codes for SKF's redemption shares:
A-share (AKILA): SE 0001993833
B-share (AKILB): SE 0001993841
The Board of Directors' proposals of a share split and redemption procedure and for an authorization for the Board to decide upon the repurchase of the Company's own shares
The Board of Directors' proposal of a share split and redemption procedure
Due to the Company's strong performance, cash generation capacity and outlook, the Board of Directors of SKF proposes a share split 2:1 combined with an automatic redemption procedure. Through this procedure the shareholders will receive one new ordinary share and one redemption share, which will be redeemed for SEK 10. The proposal means that SEK 4,554 million will be distributed to the shareholders, in addition to the proposed dividend distribution.
- The Company carries out a share split 2:1.
- Every other share, the redemption share, is redeemed automatically for SEK 10.
- The proposed record day for the split is 18 May 2007.
- For shareholders interested in selling their redemption shares before redemption takes place, trading in these shares is proposed to take place on Stockholm Stock Exchange during the period 21 May – 7 June 2007.
- Payment of the redemption amount is proposed to be made 15 June 2007.
Brief description of the proposed share split and the share redemption
The Board of Directors’ proposal implies that each SKF share, with a nominal value of SEK 12.50, will be divided into five shares with a nominal value of SEK 2.50 – four ordinary shares and one redemption share that will be
automatically redeemed for SEK 25. No application procedure by shareholders is required. The Board’s proposal will be presented to the Annual General Meeting on April 19, 2005 for a decision. If the Annual General Meeting
approves the Board’s proposal, the shareholders will receive the new shares on May 10, 2005. Cash payment for the redeemed shares will be distributed on or about June 7, 2005.