NACKA STRAND, Sweden, April 17, 2002 (PRIMEZONE) -- The Board of Directors of Hexagon AB has decided on the terms of Hexagon's rights issue, which was communicated on April 11, 2002 in connection with Hexagon's acquisition of the Metrology Company, CE Johansson. The decision by the Board of Directors regarding the rights issue is subject to approval of an Extraordinary General Meeting, which will be held on May 6, 2002 in connection with the Annual General Meeting. The Hexagon shareholders are entitled to subscribe for one new share for each four existing shares held. Shares of series A and series B entitle to subscription for shares of series A and series B, respectively. The subscription price is SEK 115 per share, which means that the proceeds will amount to a maximum of approximately SEK 425 million, before issue cost.
The reason for the rights issue is, as earlier communicated by Hexagon, to continue the company's expansion in the Metrology area during 2002. Additionally, Hexagon plans to carry out acquisitions within its other business units aiming at strengthening certain operations within them. The Hexagon Board of Directors is of the opinion that the company, to be able to take advantage of acquisition opportunities presently existing and thereby be given the possibility to expand at the desired pace, needs a capital injection from the shareholders.
Mr. Melker Schorling who controls 24.2 per cent of the capital and Mr. Maths O. Sundqvist with 12.6 of the capital, have both undertaken to subscribe for shares, corresponding to their respective holdings in the company. Additionally, Mr. Schorling has guaranteed another 20 per cent of the issue. Other owners, representing another 8 per cent of the share capital, have declared that they are positive to the issue and intend to subscribe for their respective shares of the issue.
Time schedule for the rights issue:
May 6 Extraordinary General Meeting in connection with the
Annual General Meeting to decide on the Board of
Directors' rights issue resolution
May 10 First day the Hexagon share trades exclusive of rights
to participate in the issue
May 14 Record date for participation in the rights issue, i.e.
shareholders who are registered as shareholders in
Hexagon's share register on this date will receive
subscription rights for participation in the issue
May 15 Prospectus sent to the shareholders
May 17-June 4 Trading in subscription rights
May 17-June 7 Subscription period
Enskilda Securities is Hexagon's financial advisor in connection with the rights issue.
Hexagon AB is a multinational engineering group with the long-term ambition of positioning itself as number one or number two within its strategic sectors. The operation is divided into three business areas: Hexagon Automation, Hexagon Engineering and Hexagon Metrology. The group's targets are to increase earnings per share after tax by at least 15 per cent p.a., and achieve a return on capital employed higher than 15 per cent over the business cycle. Current turnover amounts to more than 7 GSEK p.a.
The rights issue is not directed to shareholders in the United States of America or Canada or other countries where participation requires measures in addition to those required under Swedish law.
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