FPC implements share split, announces intent to purchase back shares
In its general meeting held earlier this month, Fingerprint Cards AB resolved to increase the total number of shares in the company by dividing each share, regardless of class, into five shares of the same class,
The board set May 30, 2016 as the record date for the share split, which means that the final day of trading in the share prior to the split is May 26, 2016 and the first day of trading in shares after the split is May 27, 2016.
As a result of the split, FPC’s shares will change ISIN code on May 27, 2016. The new ISIN code for the Class A share will be “SE0008374243” and for the Class B share will be “SE0008374250”.
All shares acquired as part of the share split are expected to be registered in the shareholders’ securities account on May 31, 2016.
The split will occur automatically via Euroclear Sweden AB and shareholders do not need to take any action.
Following the share split, the total number of shares in the company will amount to 322,695,675, of which the number of Class A shares will account for 6,000,000 and the number of Class B shares for 316,695,675.
The board has also been authorized on one or more occasions during the period up to the 2017 annual general meeting to make decisions regarding the purchase of a number of shares in the company so that when they are aggregated, FPC’s holding never exceeds 10% of all of its shares.
The board will make decisions on the transfer of FPC’s treasury shares as a means of payment for acquisitions of companies or business operations at a price equal to the stock-market price on the date of transfer.
The authorization may be used on several occasions from now until the 2017 annual general meeting.
FPC said that its reasons for buying back treasury shares are to “create increased latitude for the board in its efforts to shape the company’s capital structure,” which is expected to have a positive influence on the price trend of the company’s share.
This, in turn, will contribute to generating the highest possible return for shareholders, and make it more flexible for FPC to complete acquisitions of companies or business combinations.
Previously reported, Fingerprint Cards (FPC) announced its long-term financial targets — which covers the areas of growth, profitability and capital structure — from 2016 to 2018.