SAGAX PROPOSES REDEMPTION OF ALL PREFERENCE SHARES

- Redemption of all preference shares outstanding
- Redemption amount is SEK 35.00 per preference share
- Redemption requires the necessary resolution of an Extraordinary General Meeting on 19 March 2021

Background and reasons

Sagax first issued preference shares in 2006, after which Sagax’s financial structure has changed as the operations have developed. Preference shares currently comprise 1.3 percent of Sagax’s capital structure. For the purpose of simplifying this structure, the Board proposes that an Extraordinary General Meeting resolve on the redemption of all preference shares in accordance with the Articles of Association.

Redemption of preference shares

The Board intends to convene an Extraordinary General Meeting to be held on 19 March 2021 to resolve on a reduction of share capital through the compulsory redemption of all 16,784,028 preference shares in accordance with Article 5.6 of Sagax’s Articles of Association.

Redemption of the preference shares is proposed to take place following the distribution of a dividend of SEK 0.50 per preference share on 7 April 2021.

Provided that the Extraordinary General Meeting resolves to approve the redemption, Sagax will pay SEK 35.00 per preference share, corresponding to a maximum redemption amount of SEK 587,440,980. The final redemption amount will depend on the number of preference shares outstanding on the record date. The record date for the redemption of preference shares is proposed as 7 April 2021, with distribution of the redemption amount expected to take place around 12 April 2021. The redemption proceedings will take place automatically, which means that preference shareholders do not need to take any action in connection with the payment. Payment will be made to the bank account linked to each preference shareholder’s securities account. Payment for shareholders who have their preference shares registered with a nominee will take place in accordance with the procedures of the specific nominee.

The redemption of preference shares entails a reduction in the share capital of a maximum of SEK 29,372,049, corresponding to the quotient value for the redeemed shares. In connection with the redemption, an amount corresponding to the reduction will be transferred from unrestricted equity to the statutory reserve. Accordingly, the decision to reduce the share capital does not require the permission of the Swedish Companies Registration Office or a general court.

If the Extraordinary General Meeting resolves to approve the redemption of the preference shares, the final day of trading in the preference shares on Nasdaq Stockholm is expected to be 1 April 2021.

Important dates for redemption of preference shares

Share conversion clause

Preference shareholders who wish to exercise the share conversion clause stipulated in Article 5.7 of Sagax’s Articles of Association and request conversion of preference shares to Class D common shares must do so not later than 22 March 2021.

For further information, please contact CEO David Mindus, tel +46 8 545 83 540.

About AB Sagax

AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industry segment. Sagax’s property holdings at 30 September 2020 amounted to 3,565,000 square metres, distributed between 698 properties. AB Sagax (publ) is listed on Nasdaq Stockholm, Large Cap. More information is available at www.sagax.se

This constitutes information that AB Sagax (publ) is legally obliged to publish under the EU’s Market Abuse Regulation. The information was released for publication, through the agency of the contact person above, on 3 February 2021 at 9:30 p.m. CET.