The objective with the acquisition of own shares is to enable an adjustment of the company's capital structure and in this way contribute to a more effective use of the company's resources. For the time being, no share buy-backs are carried out.
Current Authority from Annual General Meeting
The share buy-backs are based on a decision by the AGM in 2005. The meeting resolved unanimously to authorise the Board to, within certain restrictions, resolve on the acquisition of the company's own shares. The share buy-backs have not existed since 2008.
See press release.
Publication of share buy-backs
The acquisition of the company's own shares is made public after the transaction is completed. Current information is available on the website of the exchange Stockholmsbörsen, and is updated on a daily basis. No share buy-backs have been made since 2004-12-22.
Share buy-back restrictions
The acquisition of shares is subject to a number of restrictions. These restrictions derive from the AGM decision, Swedish law or other rules. The restrictions are:
- The 10% rule. The company's holding of its own shares must not at any time exceed one tenth of the total number of shares in the company
- Non-restricted equity. The company is only allowed to use non-restricted equity for acquisitions of own shares.
- The insider rule. No share buy-backs are allowed during the 30 days-period prior to financial reports and the reporting date itself. The company is deemed to then have superior knowledge about the report, in effect making the company an insider.
- Price spread. Acquisitions may only be made consecutively on Stockholmsbörsen within the registered price range on the stock exchange in a given period, where the range is between the highest bid price and the lowest price offered.
- Payment for acquired own shares shall be in cash.
- General rules regarding share buy-back. Among others is the rule that the company is not allowed to influence trading in its own share by acquiring more than 25% of the average number of shares that has been traded during four previous calendar weeks. An exception is granted for so called bloc trades.