The Board of Directors of Eltel AB (publ.) has decided to issue 537,000 class C shares and exercise its repurchase authorisation to secure Eltel’s obligations under its Long Term Incentive Programme 2015 (“LTIP 2015”).
The Annual General Meeting 2015 of Eltel (AGM) decided, with the aim to ensure that Eltel can fulfil its obligations under LTIP 2015, to authorise the Board of Directors to decide on a directed issue of redeemable and convertible class C shares. Furthermore, the AGM 2015 decided to authorise the Board to decide on the repurchase of all issued class C shares via a directed acquisition offer to all holders of class C shares.
The Board has decided to exercise these authorisations by issuing 537,000 class C shares to a financial institution, and immediately repurchase all these shares. The issue was carried out at the shares’ quota value, and the shares were repurchased at the same price. The time for subscription and repurchasing of the class C shares was on 5 April 2016.
Eltel currently holds no treasury or C shares. Following the repurchase of class C shares as outlined above, the number of class C shares held by Eltel thus totals 537,000. The class C shares do not entitle to any dividend and carry 1/10 voting rights. However, Eltel will not exercise any voting rights regarding these shares as long as held by Eltel.
The total number of shares in Eltel AB after the share issue is 62,624,238 ordinary shares (unchanged) and 537,000 C shares.
In connection with delivery of shares to employees in 2018, the intention is to convert repurchased class C shares into ordinary shares, in accordance with the terms of LTIP 2015.
The information above has been published pursuant to the Swedish Securities Markets Act (Sw: Lag om värdepappersmarknaden) and the Swedish Financial Instruments Trading Act (Sw: Lagen om handel med finansiella instrument).
For further information:
VP – IR and Group Communications
Tel: +358 40 311 3009, email@example.com
Eltel is a leading European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Transport & Security, with operations throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a loyal and growing customer base of large network owners. The current number of employees is approximately 9,600. In 2015 Eltel’s net sales amounted to EUR 1,255 million. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.