STOCKHOLM, Sweden, May 11, 2004 (PRIMEZONE) -- (ELUX) The Annual General Meeting on April 21, 2004 resolved on a share redemption offer to the shareholders of Electrolux. The application period for the redemption offer runs for the period May 4 -- June 1, 2004. The Board of Directors of Electrolux has today decided to convene an Extraordinary General Meeting to be held on June 16, 2004, at which the shareholders are proposed to adopt the resolutions required for implementation of the redemption offer.
The Board of Directors proposes that the Extraordinary General Meeting decides on a reduction of Electrolux share capital of no more than SEK 76,652,650, through redemption of no more than 15,330,530 shares. For each redeemed share SEK 200 will be paid, i.e. in total no more than SEK 3,066,106,000.
In order to achieve speedier payment to the shareholders, the Board of Directors also proposes that the company's share capital shall be increased by no more than SEK 76,652,650, through a new issue of no more than 15,330,530 redeemable shares of series C. The subscription price is SEK 5 per share. Handelsbanken shall subscribe for the new shares with deviation from the shareholders' preferential rights. The reason for deviation from the shareholders' preferential rights is that the resolution on redemption of shares and the payment to the shareholders pursuant to the redemption offer may be executed without the delay of obtaining court approval, if, at the same time, an amount equal to the reduction amount is contributed to the company by way of a new issue of shares. Handelsbanken has undertaken to subscribe for these shares of series C and to have them redeemed. Furthermore, the Board of Directors proposes that the decisions by the Extraordinary General Meeting inlcude reduction of the company's share capital through redemption of the newly issued shares of series C.
Notice of the Extraordinary General Meeting will be made public around May 26, 2004. The Board of Directors' complete proposal for resolutions at the Extraordinary General Meeting, with stipulation of the exact reduction amounts, the number of shares to be redeemed and the number of new shares to be issued, will be made public no later than June 9, 2004.
The Electrolux Group is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chainsaws, lawn mowers, and garden tractors. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use sold under famous brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka and Husqvarna. In 2003, Electrolux had sales of SEK 124.1 billion and 77,100 employees.
Further information
Electrolux Press Hotline is available at +46 8 657 65 07.
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