STOCKHOLM, Sweden, March 14, 2003 (PRIMEZONE) -- Industriforvaltnings AB Kinnevik (Nasdaq:KVIKA) (Nasdaq:KVIKB) today announced that it has filed a certification and notice of termination with the U.S. Securities and Exchange Commission for the voluntary deregistration of the Company's American Depositary Shares under the Securities Exchange Act of 1934, as amended. In connection with the deregistration of the ADSs, the Company intends to request the delisting of Kinnevik's series A and series B ADSs from the NASDAQ National Market. These actions will not affect the continuing listing of Kinnevik's series A and series B shares on the Stockholm Stock Exchange.
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 U.S. 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.
For further information, please contact: Vigo Carlund, CEO, Industriforvaltnings AB tel: +46 8 5620 0000 Kinnevik Matthew Hooper, Investor & Press Relations tel: +44 20 7321 5010
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