The annual general meeting of shareholders 2001 of Ericsson resolved to approve transfer of own stock in relation to the introduction of a Global Stock Incentive Program. The resolution comprised, inter alia, a right for the company to transfer a maximum of 31,000,000 shares of series B to cover certain payments, mainly for social security charges that may occur in relation to the program. Resolutions to approve transfer of own stock for the above-mentioned purpose have thereafter been made at the annual general meeting of shareholders 2002 and 2003.
The annual general meeting of shareholders 2003 also resolved to approve transfer of own stock in relation to the Stock Purchase Plan 2003. The resolution comprised, inter alia, a right for the company to transfer a maximum of 26,000,000 shares of series B to cover certain payments, mainly for social security charges.
In accordance with the resolutions, 1,219,435 shares have been transferred up to February 18, 2004.
Therefore, the Board of Directors proposes the annual general meeting of shareholders to resolve that Ericsson shall have the right to transfer, prior to the annual general meeting 2005, a maximum of 55,780,565 shares of series B, or the lower number of shares of series B, which as per April 6, 2004, remains of the original 57,000,000 shares, for the purpose of covering certain payments, primarily social security charges that may occur in relation to the company's Global Stock Incentive Program 2001 and the Stock Purchase Plan 2003. Transfer of the shares shall be effected at Stockholmsbörsen (the Stockholm Stock Exchange) at a price within the, at each time, registered price interval for the share.
Based on the share market value and the company's financial statement by December 31, 2003, a transfer of 55,780,565 shares would add SEK 717 million to the liquidity and increase the equity ratio by 0.3 percentage points. The transfer of shares, as proposed, would not affect the company's result, as the consideration would be transferred to the equity. The number of outstanding shares would increase, corresponding to 0.35 percent of the outstanding shares per December 31, 2003. As per today, Ericsson holds 304,670,314 own shares.
The complete proposal of the Board will be available on Ericsson's website, www.ericsson.com, as from March 23, 2004.
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