Kinnevik files to deregister American Depositary Shares

3/14/2003 3:24 PM

Kinnevik's shares were registered with the SEC and listed on NASDAQ in 2000 in the form of series A and series B ADSs, each representing one ordinary series A and one ordinary series B share respectively. The Board of Directors of Kinnevik has decided to pursue this course of action for the following reasons:
  • The total number of holders of series A and series B ADSs, who are resident in the United States, is less than 300 and, as of 5 February 2003, there were 11,495 series A ADSs and 24,569 series B ADSs outstanding, compared to 15 million series A shares and 48 million series B shares outstanding in total
  • The volume of trading in the ADSs on NASDAQ is very low with only 68,000 ADSs traded during the period from January 2001 to August 2002 on NASDAQ, compared to 64 million shares traded on the Stockholm Stock Exchange during the same period of time
  • Non-Swedish shareholders, including shareholders in the U.S., own 13% of the issued share capital of Kinnevik and have typically acquired shares via the Company's listing on the Stockholm Stock Exchange
  • The Board of Directors does not believe that the deregistration and delisting will have an adverse effect on the ability of the Company's principal US shareholders to hold shares in the Company
  • The Board of Directors therefore believes that the cost of maintaining the SEC registration and NASDAQ listing are no longer justified                                                                           
At such time as the ADSs are delisted from NASDAQ, registered holders of series A and series B Kinnevik ADSs will be contacted by the Company's Depositary Bank in respect of the ADSs, The Bank of New York, with instructions regarding how to proceed.
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