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Offer to redeem shares in Sandvik AB

In accordance with the Board's proposal, the Annual General Meeting of shareholders in Sandvik today resolved to make an offer to the company's shareholders to redeem their shares for a total amount of approximately SEK 4 billion.

The background to the offer, as presented earlier in conjunction with the 2004 year-end report, is the company's strong balance sheet and an endeavor by the Board to increase shareholder value.

In brief, the offer entails the following:

  • Each share in the company entitles the holder to one redemption right
  • 25 redemption rights entitle the holder to redeem one share in Sandvik
  • Sandvik will pay SEK 405 for each share redeemed
  • A maximum of 500 redemption rights may be sold commission-free

The redemption offer is conditional on an Extraordinary General Meeting in Sandvik resolving on, among other things, reduction of the share capital with a statement of definite reduction amount, definite number of shares that the redemption comprises and redemption amount. This Extraordinary General Meeting is scheduled to be held on 28 June 2005.

Assuming that the offer is fully accepted, the share capital in Sandvik will be reduced by SEK 59.3 M through the redemption of 9.9 million shares. Sandvik holds approximately 16.5 million of its own shares, which are not included in the offer. The Board of Sandvik also intends to propose that the Extraordinary General Meeting resolve to cancel all shares repurchased previously. Following the share redemption and the cancellation of shares repurchased previously, the share capital will amount to not less than SEK 1,423 M, distributed among not less than 237.2 million shares.

The redemption offer is not being made to persons in countries that require additional prospectus information, registration or measures other than those pursuant to Swedish law. Such countries include Australia, Japan, Canada, New Zealand and the US. Sandvik has commissioned Handelsbanken Capital Markets to manage the sale of redemption rights held by directly registered shareholders in these countries on their behalf.

Redemption offer timetable

  • Record date for entitlement to redemption rights: 9 May 2005.
  • Application period for redemption of shares: 17 May – 10 June 2005.
  • Application period for commission-free sale of redemption rights: 17 – 30 May 2005.
  • Trading in redemption rights: 17 May – 7 June 2005.
  • Trading in redemption shares: 21 – 30 June 2005.
  • Payment of redemption amount: on or about 8 July 2005.

An information brochure on the redemption offer will be distributed to shareholders who are directly registered with VPC on 9 May 2005.
The brochure as PDF (PDF document, 577 kB)

Sandviken, 3 May 2005

Sandvik AB; (publ)

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