Autoliv Swedish Depository Receipts: Changes to Terms and Conditions, ISIN-code, and Withholding Agent
- None.
- The termination of the agreement with Euroclear Sweden may cause inconvenience for SDRs holders who need to transfer their holdings to a custody account with a bank or securities institution, or have them automatically converted to Autoliv Common Stock.
The announcement of Autoliv, Inc.'s change in Withholding Agent from Euroclear Sweden to SEB, accompanied by the issuance of a new ISIN code for its Swedish Depository Receipts (SDRs), represents a significant administrative adjustment that could impact investor operations. The necessity for SDR holders to ensure their custodian has a Qualified Intermediary (QI) agreement with the IRS is crucial to avoid higher withholding taxes on dividends. This change might cause short-term trading disruptions around the transition period due to the inability to convert between SDRs and common stock. In the long-term, the appointment of SEB as the new Withholding Agent could streamline tax processes for shareholders, potentially making Autoliv's SDRs more attractive to international investors.
From a tax perspective, the shift to SEB as the Withholding Agent for Autoliv's SDRs is a critical development for investors. The emphasis on the QI status of custodians and nominees highlights the intersection of U.S. and foreign tax laws and the implications for cross-border investments. Investors must act promptly to verify the QI status of their custodians to mitigate the risk of increased tax liabilities on future dividends. The information provided suggests a proactive approach by Autoliv to assist investors in navigating the complexities of international tax compliance, which is a positive signal for investor relations.
The transition in Withholding Agent and the new ISIN code for Autoliv's SDRs could reflect broader trends in the market where companies are restructuring their financial instruments to better accommodate international investors. The fact that Autoliv has provided a clear timeline and is offering detailed information on its website indicates a strategy to minimize market confusion and ensure a smooth transition. This event may be observed by market analysts as a case study in how companies manage significant administrative changes without adversely affecting their stock's liquidity and investor confidence.
As Euroclear Sweden is no longer the Withholding Agent, it is necessary to change the ISIN code to enable SEB to serve as the new Withholding Agent. As of the date the new ISIN is effective, it will no longer be possible to hold Autoliv SDRs as owner registered holdings in a CSD account (Swedish: VP konto) with Euroclear Sweden. Such owner registered holdings in CSD accounts either (i) must be transferred to a custody account with a bank, or securities institution, which holds the role as nominee in Euroclear Sweden prior to February 29, 2024 or (ii) such Autoliv SDRs will automatically be converted to Autoliv Common Stock which is denominated in
In order for you as owner of Autoliv SDRs to not be subject to so-called double taxation of potential future Autoliv dividends, your bank/custodian/nominee needs to be a Qualified Intermediary (QI) with a tax agreement with the US Internal Revenue Service (IRS). If your bank/custodian/nominee does not have a QI tax agreement with the IRS, higher US withholding tax will be charged to dividends than if your bank/custodian/nominee has a QI agreement. It is therefore important that you contact your bank/custodian/nominee that holds your SDRs to ensure that it has a QI agreement [2].
The record date for the ISIN change is February 29, 2024. The last day of trading for the current ISIN code is February 27, 2024. The first day of trading on Nasdaq Stockholm with the new ISIN code is February 28, 2024. During the period of February 26 thru February 29, 2024, it will not be possible to convert between Autoliv SDRs and Autoliv, Inc. Common Stock traded on the New York Stock Exchange.
More information, including the updated terms & conditions, will be made available on Autoliv's website: (http://www.autoliv.com/investors/share/SDR).
Inquiries:
Investors & Analysts: Anders Trapp, Tel +46 (0)8 587 206 71
Investors & Analysts: Henrik Kaar, Tel +46 (0)8 587 206 14
[1] ISIN is a unique code for identifying securities.
[2] The foregoing information is of a general nature and is not intended to constitute tax advice. Investors are asked to consult their own advisors regarding the specific tax consequences for each investor due to dividends, including the application and effect of
About Autoliv
Autoliv, Inc. (NYSE: ALV) (Nasdaq Stockholm: ALIV.sdb) is the worldwide leader in automotive safety systems. Through our group companies, we develop, manufacture and market protective systems, such as airbags, seatbelts, and steering wheels for all major automotive manufacturers in the world as well as mobility safety solutions, such as pedestrian protection, connected safety services and safety solutions for riders of powered two wheelers. At Autoliv, we challenge and re-define the standards of mobility safety to sustainably deliver leading solutions. In 2022, our products saved close to 35,000 lives and reduced more than 450,000 injuries.
Our close to 70,000 associates in 27 countries are passionate about our vision of Saving More Lives and quality is at the heart of everything we do. We drive innovation, research, and development at our 14 technical centers, with their 20 test tracks. Sales in 2022 amounted to US
Safe Harbor Statement
This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including general economic conditions and fluctuations in the global automotive market. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any such statements in light of new information or future events, except as required by law.
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SOURCE Autoliv
FAQ
What are the upcoming changes to Autoliv, Inc. Swedish Depository Receipts (SDRs)?
Who will assume the role of Withholding Agent for Autoliv SDRs?
When is the record date for the ISIN change?
Where can affected SDRs holders find more information about the changes?
What should SDRs holders do to avoid double taxation of potential future Autoliv dividends?
