LINKOPING, Sweden, Dec. 9, 2005 (PRIMEZONE) -- Saab AB Board has approved the allocation of funds of approximately 2,500 MSEK equivalent to the PRI liability as of the 31st of December 2005 to a new pension fund, Saab Pensionsstiftelse. The earlier established pension fund (established in 2004) is today managing funds of approximately 570 MSEK.
The pension funds will then secure PRI obligations of approximately 3,100 MSEK. The funding of Saab Pensionsstiftelse will primarily be made through a cash contribution.
The overall objective with this transaction is to hedge the interest rate volatility of the pension liability and to reduce the overall cost of pensions. The deconsolidation of the PRI liability will reduce assets by 2 500 MSEK which will have a positive impact on some key ratios.
"By creation of a separate pension fund we will also enhance financial flexibility and gain a more transparent balance sheet, easier to analyze and in line with international practice," says Peter Sandehed, Head of Corporate Treasury.
The establishment of Saab Pensionsstiftelse will be effective during the first quarter of 2006.
Saab is one of the world's leading high-technology companies, with its main operations focusing on defense, aviation and space. The group covers a broad spectrum of competence and capabilities in systems integration.
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