The share capital of Ericsson consists of three classes of shares; A, B and C shares. Each A share carries one vote, each B share one tenth of one vote and each C share one-thousandth of one vote. Class A and B shares entitle the holder to the same proportion of assets and earnings and carry equal rights in terms of dividends. Class C shares are only used for issuance and buy-back to finance the Company’s long-term variable remuneration program. When the Company has acquired the C shares, they are converted into B shares.
To increase transparency as to the pricing of the Company’s Class B share and ADS (American Depositary Shares) respectively, and to obtain a number of shares more suitable for the Company, the Annual General Meeting of Shareholders 2008 resolved on a reverse split 1:5 of the Company’s Class A and B shares. This implied that for five A shares and five B shares, shareholders received one A share and one B share, respectively. Apart from having a different quotient value, each new consolidated A and B share carries the same rights as those previously attached to the shares in the respective class of shares.
