Heimstaden AB (“Heimstaden” or the “Company”) convenes the Annual General Meeting and proposes inter alia an amendment of the Articles of Association introducing a new class of shares, preference shares of series B, and an authorisation for the Board of Directors to resolve on a new issues of shares corresponding to a maximum of 30 per cent of the Company’s share capital (at the time the authorisation is first used), through a new issue of ordinary shares, preference shares or preference shares of series B, or a combination thereof. The Annual General Meeting is scheduled to be held on 7 April 2022 and notice of the Annual General Meeting will be published in a separate press release today.
The new class of preference shares of series B
The proposed amendment of the Articles of Association introduces a new class of preference shares, preference shares of series B.
The new preference shares of series B are proposed to entitle to an initial dividend of SEK 10 per annum, divided into four quarterly equal payments. The dividend is further proposed to be recalculated every second year based on the development of the two-year annual interest rate for interest rate swap transactions in SEK (“SKSW2” as it is published on Bloomberg screen). The purpose of the recalculation provision is that the dividend shall follow the development of market interest rates and thereby constitute an attractive instrument for investors over time, irrespective of the development of market interest rates. The new preference shares of series B are proposed to rank pari passu alongside the existing preference shares and thus ahead of the ordinary shares in terms of preferential right to dividend and distribution in the event of the Company’s dissolution.
Authorisation to issue ordinary shares, preference shares and preference shares of series B
Heimstaden assesses that conditions for continued growth through investments in residential properties in line with the Company’s long-term strategy are good. The purpose of the authorisation is to enable the Company to raise capital or to refinance within the current capital structure (including in accordance with an accelerated timetable) as part of the Company’s work to continue its growth, inter alia, through acquisitions and investments in existing holdings (directly and/or indirectly) and to achieve a more efficient capital structure and a diversification of the shareholder base. The proposal includes the issue of shares with or without preferential rights for existing shareholders.
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