Ericsson to utilize mandate to transfer shares

Rhea-AI Summary

Ericsson's annual general meeting authorized the company to transfer shares for tax and social security liabilities. The company will retain and sell 60% of vested shares under the LTV 2021 program. Ericsson holds 12,184,543 shares and may transfer up to 345,673 shares on Nasdaq Stockholm. The transfer period is from May 3, 2024, to the annual general meeting in 2025.

Positive

• Ericsson's decision to utilize the authorization to transfer shares shows proactive financial management and planning for tax and social security liabilities.

• The company's ability to cover costs for withholding and paying tax and social security liabilities reflects a commitment to supporting participants in performance share awards.

• Ericsson's transparency about the share transfer process enhances investor confidence by providing clarity on the company's financial operations.

Negative

• The potential sale of up to 60% of vested LTV 2021 shares may impact shareholder ownership percentages and could lead to dilution if not managed effectively.

• There is a risk that the transfer of shares on Nasdaq Stockholm could influence market dynamics and stock prices during the specified period.

STOCKHOLM, May 3, 2024 /PRNewswire/ -- Ericsson's (NASDAQ: ERIC) annual general meeting on April 3, 2024 authorized the company to, in conjunction with the delivery of vested shares under the long-term variable compensation program 2021 ("LTV 2021"), prior to the annual general meeting in 2025, retain and sell no more than 60% of the vested LTV 2021 shares of series B in the company in order to cover for the costs for withholding and paying tax and social security liabilities on behalf of the participants in relation to the performance share awards for remittance to revenue authorities. Ericsson has decided to utilize the authorization to transfer shares for these purposes.

The transfer of these shares may take place on Nasdaq Stockholm during the period from and including May 3, 2024 up to the annual general meeting 2025 at a price within the price interval registered from time to time.

Ericsson currently holds 12,184,543 shares of series B in the company and the maximum number of shares that may be transferred on Nasdaq Stockholm pursuant to the decision to utilize the authorization amounts to 345,673 shares of series B in the company.

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ABOUT ERICSSON:
Ericsson enables communications service providers and enterprises to capture the full value of connectivity. The company's portfolio spans the following business areas: Networks, Cloud Software and Services, Enterprise Wireless Solutions and Global Communications Platform. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com

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Ericsson to utilize mandate to transfer shares

 

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SOURCE Ericsson

FAQ

What was authorized at Ericsson's annual general meeting in April 2024?

Ericsson was authorized to transfer shares to cover tax and social security liabilities.

How many shares does Ericsson currently hold in the company?

Ericsson currently holds 12,184,543 shares of series B in the company.

What is the maximum number of shares that Ericsson may transfer on Nasdaq Stockholm?

Ericsson may transfer up to 345,673 shares of series B in the company on Nasdaq Stockholm.

When is the transfer period for Ericsson's shares?

The transfer period for Ericsson's shares is from May 3, 2024, up to the annual general meeting in 2025.

Where is Ericsson's stock listed?

Ericsson's stock is listed on Nasdaq Stockholm and Nasdaq New York.

What is Ericsson's business focus areas?

Ericsson's business areas include Networks, Cloud Software and Services, Enterprise Wireless Solutions, and Global Communications Platform.