1:10 ratio change for American Depositary Shares
Ericsson board authorizes 1:10 ratio change for American Depositary Shares
Date: Friday, October 18 2002
The Board of Directors of Ericsson has authorized a change in the
ratio of its American Depositary Shares (ADSs) as they relate to its
Class B-shares. The change is expected to become effective as of
October 23, 2002.
One ADS at the new ratio will be issued in exchange for every ten
currently outstanding. Following this exchange, one new ADS will
represent 10 Class B-shares. This will result in a technical price
adjustment to the ADSs corresponding to the ratio change. The current
ratio is 1:1.
Ericsson's Board has authorized this change in order to comply with
the listing requirements of the Nasdaq National Market. ADS holders
will not be charged a fee for this transaction.
After the change, the ADSs will temporarily trade under the interim
symbol of "ERICD" for a period of 20 days to assist in making
investors aware of the ratio change. Thereafter, the symbol will
revert to the original "ERICY" trading symbol.
The ratio change will reduce the number of outstanding ADSs from
approximately 1.7 billion to approximately 170 million. Citibank,
N.A., as depositary, will notify existing ADS holders as to how to
exchange their share certificates. ADS holders will be compensated at
a rate to be determined for holdings not amounting to ten or not
divisible by ten.
Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries, Ericsson
is helping to create the most powerful communication companies in the
world. Read more at ericsson.com
FOR FURTHER INFORMATION, PLEASE CONTACT
Investors
Glenn Sapadin, Investor Relations (US)
Phone: +1-212-685-4030
E-mail: investor.relations@ericsson.com
Media
Åse Lindskog, Director, Media Relations
Phone: +46 8 719 9725, +46 730 244 872
E-mail: ase.lindskog@lme.ericsson.se
Mads Madsen, Director, Media Relations
Phone: +46 8 719 0626, +46 70 666 2903
E-mail: mads.madsen@lme.ericsson.se
See also: ericsson.com |
