SAS's board of directors has decided to redeem all 2.1 million preference shares for a total of SEK 1.1 billion.
This is stated in a press release.
The redemption proceeds amount to SEK 529.17 per preference share (SEK 525 plus accrued dividend of SEK 4.17) for the mandatory redemption, compared to Wednesday's closing price of SEK 538.
Payment is expected to take place on December 5 and will be automatic, meaning shareholders do not need to take any action.
”"This mandatory redemption of the remaining preference shares concludes the process of redemption of preference shares that we initiated earlier this year. I would like to thank the preference shareholders for their support since 2014," says SAS CFO Torbjørn Wist in the press release.
The last day for trading the preference share on the Stockholm Stock Exchange is November 28.
According to Holdings, the largest owner of SAS preference shares is the hedge fund Gladiator, run by Max Mitteregger. During the third quarter, the fund purchased 6,281 shares at an average price of SEK 549, and during the second quarter, 22,069 shares were purchased at SEK 553.
The preference share entitled to an annual dividend of SEK 50 per year with quarterly dividends, and starting in May next year it would be increased by SEK 5 per year to SEK 75 on an annual basis in May 2023.
Source: di.se
