Reclassification of security

A security can be exchanged completely or partially for another security and this can be done in two ways: a change of security type/sort or a reclassification.

A change of security sort means that all securities are replaced by a certain sort. It could, for example, be a company that has previously had two share types and now wishes to combine them into one. In its articles of association a company could also have a restriction on conversion or reclassification. An individual holding can be reclassified to a holding in another share type and sort according to the terms of the restriction.

The following securities could be subject to this:
• shares (AK)
• loans (KV, RB)
• interim shares (IA)
• convertible participating debentures (KVB)
• Swedish depository receipts (SDB)

The routine can also be used where a loan is to be exchanged for a new loan.

The Issuer should contact Euroclear Sweden in good time in order to book the record date and discuss the implementation. As a basis for a share exchange, a certificate of amendment is required from the Swedish Companies Registration Office or the Swedish Financial Supervisory Authority. It is the responsibility of the Issuer to inform any marketplace concerned.

 Read more in  Rules for Issuers and Issuer Agents


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