Electrolux Professional AB (publ) plans to apply for a delisting of the company’s series A shares as the company, following contacts with Nasdaq Stockholm, has been informed of an insufficient liquidity in the series A share resulting in a dysfunctional pricing. An application for delisting will only concern to the series A shares, and will not affect the company’s series B shares. Holders of Electrolux Professional’s series A shares can request conversion of their series A shares into series B shares.
The company has requested a statement from the Swedish Securities Council and Nasdaq Stockholm has commented on the company’s request.
In the statement (AMN 2020:19), which will be available during the course of tomorrow at the latest at www.aktiemarknadsnamnden.se, the Swedish Securities Council, in line with its precedents and on the basis of what is stated in the request and in the stock exchange’s comment on the same, concludes that a request for delisting of the series A shares by Electrolux Professional could not in the council’s opinion be deemed to violate good practice on the Swedish securities market. However, good practice requires that Electrolux Professional apply for delisting only after the market has been informed of the delisting plans, and the shareholders have had a reasonable time to sell their shares or otherwise act on the basis of the information. In the council’s opinion, the application for delisting should therefore be submitted no earlier than three months after the market has been informed of the delisting plans.
In Nasdaq Stockholm’s comment to the request, the stock exchange concludes that the liquidity in the company’s series A share in practice, and in a way that could not have been foreseen and the time of listing, has been insufficient and resulted in a dysfunctional pricing of the share class in accordance with what the company presented in its request to the Swedish Securities Council. In this context, and on the basis of what is stated in the request, it is further noted that the number of qualified shareholders of series A shares as well as the so called free float of the share class appears to fall short of the levels at which the stock exchange presumes that the stock exchange’s liquidity requirement is fulfilled. In light of the above, the stock exchange assesses that the company in relation to its A share does not meet the requirement of sufficient demand and supply in order to facilitate a reliable price formation process as described in rule 2.13.1 in the Nordic Main Market Rulebook for Issuers of Shares. Consequently, in the event of a continued listing of the company’s series A shares on Nasdaq Stockholm, the stock exchange would be required to request that the company take measures in order to fulfill this liquidity requirement, at the risk that the stock exchange otherwise would take measures to delist the share class.
Electrolux Professionals announces by way of this press release its intention to apply for a delisting of the company’s series A shares from Nasdaq Stockholm. The Board of Directors intends to apply for a delisting of the series A shares no earlier than three months following the date of this press release, and only if the listing requirements are still not met at that time.
Holders of Electrolux Professional’s series A shares may request that their series A shares are converted into series B shares, in accordance with § 5 of the Articles of Association. Additional information about conversion and how such a request is made will be posted on the company’s website www.electroluxprofessional.com/corporate. A delisting of the series A shares would mean that the holdings of series A shares that are not converted into series B shares would no longer be subject to organized trading on Nasdaq Stockholm and would therefore constitute unlisted holdings. The ownership of the series A shares would not be affected by a delisting, and the shareholders would keep their rights to dividends etc. under the Swedish Companies Act (Sw. Aktiebolagslagen (2005:551)) and the Articles of Association.
This information is information that Electrolux Professional AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person below, at 7:30 p.m. CET on May 6, 2020.
For further information, please contact:
Jacob Broberg, Senior Vice President Investor Relations and Communications +46 70 190 00 33