Ericsson resolves on an acquisition offer for C shares for LTV II 2023, LTV 2022 and LTV 2021

Rhea-AI Summary

Ericsson expands its treasury stock to provide shares for Long-Term Variable Compensation Programs. The company will acquire all 10 million C shares from Investor AB for approximately SEK 5 per share. Once acquired, the C shares will be converted to B shares.

Positive

• Ericsson expands its treasury stock to provide shares for Long-Term Variable Compensation Programs
• The company will acquire all 10 million C shares from Investor AB
• The acquisition offer includes a payment of approximately SEK 5 per share
• The total number of shares in Ericsson will amount to 3,344,151,735 after the conversion

Negative

• None.

STOCKHOLM, May 2, 2023 /PRNewswire/ -- In accordance with the resolutions by the Annual General Meeting 2023, Ericsson (NASDAQ:ERIC) expands its treasury stock in order to provide shares for the Long-Term Variable Compensation Programs LTV II 2023, LTV 2022 and LTV 2021 for Ericsson's executive team and other executives.

The Board of Directors of Ericsson has today resolved, by virtue of authorizations given by the Annual General Meeting on March 29, 2023 (the "AGM 2023"), to direct an acquisition offer to all holders of C shares to acquire these shares. The acquisition shall be made during the period May 11 – May 25, 2023 and payment for acquired shares shall be made in cash with approximately SEK 5 per share (corresponding to the quota value of the Ericsson share).

The offer is part of the financing of Ericsson's Long-Term Variable Compensation Programs LTV II 2023, LTV 2022 and LTV 2021 and includes all 10 million C shares which the AGM 2023 resolved to issue to Investor AB for these programs. Investor AB have today subscribed for all 10 million C shares and informed Ericsson that they intend to accept the acquisition offer.

Once all 10 million C shares have been acquired by Ericsson, the Board intends to convert them to B shares. After the conversion, the total number of shares in Ericsson will amount to 3,344,151,735, of which 261,755,983 are A shares and 3,082,395,752 are B shares. Ericsson currently holds 4,009,306 B shares as treasury stock.

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ABOUT ERICSSON:
Ericsson enables communications service providers and enterprises to capture the full value of connectivity. The company's portfolio spans the following business areas: Networks, Cloud Software and Services, Enterprise Wireless Solutions, Global Communications Platform, and Technologies and New Businesses. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com

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Ericsson resolves on an acquisition offer for C shares for LTV II 2023, LTV 2022 and LTV 2021

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SOURCE Ericsson

FAQ

What is Ericsson expanding its treasury stock for?

Ericsson is expanding its treasury stock to provide shares for Long-Term Variable Compensation Programs.

Who will Ericsson acquire the C shares from?

Ericsson will acquire all 10 million C shares from Investor AB.

How much will Ericsson pay per share?

Ericsson will pay approximately SEK 5 per share.

What will happen to the C shares after they are acquired?

The C shares will be converted to B shares.

What will be the total number of shares in Ericsson after the conversion?

The total number of shares in Ericsson will amount to 3,344,151,735 after the conversion.