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Saab plans a rights issue of approximately SEK 6 billion

Not for or release, publication or distribution, directly or indirectly, in whole or in part, in or into Australia, Hong Kong, Japan, India, South Africa, Canada, Singapore, the United States or any other jurisdiction where such publication or distribution of this press release would be subject to legal restrictions.

  • A strong demand for Saab’s products and systems has the last few years resulted in a record high order backlog, strong sales growth and an increased internationalization. Saab currently has a strong market position
  • Through the U.S. Air Force’s choice of the T-X trainer, developed by Saab and Boeing, Saab will strengthen its position in the U.S. This demonstrates Saab’s efforts to broaden and expand its international business
  • To support the Saab’s continued growth journey and give Saab increased opportunity to successfully compete for new large orders the company is planning a rights issue for eligible shareholders during the fourth quarter of approximately SEK 6 billion
  • Investor AB and the Knut and Alice Wallenberg Foundation, as well as other shareholders, together representing 52.3 percent of the share capital and 58.9 percent of the votes (excluding repurchased shares)[1], have expressed their support for the rights issue

[1] The total number of outstanding shares is 106,677,167, of which 1,907,123 are A-shares and 104,770,044 are B-shares. The remaining 2,473,177 B-shares are owned by Saab AB

Saab has during the last three-year period embarked on a growth journey, with larger development projects in the order backlog and an increased internationalization. The development projects in the order backlog include, among others, Sweden and Brazil’s orders of Gripen E, the submarine order A26 from Sweden, as well as the order from the UAE on GlobalEye, which is a new generation Airborne Warning and Control system.

Saab holds a strong position with its current product portfolio and strategic partnerships. The company anticipates a continued strong demand for its products and systems as well as increasing defence budgets in most markets.

Large orders also imply initially increased investments in production and working capital, and at the same time the rapid technology development entails continued investments in research and development. Saab therefore needs a strong financial position to create room for continued growth.

To support Saab’s continued growth journey and give Saab increased opportunity to successfully compete for large orders, Saab is planning a rights issue of approximately SEK 6 billion. Saab’s Board propose that an Extraordinary General Meeting authorizes the Board to resolve on a rights issue during the fourth quarter.

Support from shareholders

Investor AB and the Knut and Alice Wallenberg Foundation, representing 39.7 percent of the share capital and 48.1 percent of the votes (excluding repurchased shares)[2] , together with other shareholders, representing 12.6 percent of the share capital and 10.8 percent of the votes (excluding repurchased shares)[2] , have expressed their support for the rights issue.

[2] The total number of outstanding shares is 106,677,167, of which 1,907,123 are A-shares and 104,770,044 are B-shares. The remaining 2,473,177 B-shares are owned by Saab AB

Preliminary timetable

An Extraordinary General Meeting is expected to take place the 16 November 2018 to decide on an authorization of the board to decide on the rights issue. The notice to the Extraordinary General Meeting is published in a separate press release. The company intends to complete the issue during the fourth quarter of 2018.

Advisors

SEB Corporate Finance is the financial advisor and Mannheimer Swartling the legal advisor regarding the rights issue.

For further information, please contact:

Ann-Sofi Jönsson, Vice President, Head of Investor Relations
+46 734 187214
ann-sofi.jonsson@saabgroup.com

Ann Wolgers, Press Officer
+46 734 18 00 18
presscentre@saabgroup.com

www.saabgroup.com
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Saab serves the global market with world-leading products, services and solutions within military defence and civil security. Saab has operations and employees on all continents around the world. Through innovative, collaborative and pragmatic thinking, Saab develops, adopts and improves new technology to meet customers’ changing needs. 

The information is such that Saab is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the Saab contact person set out above, at 7.25 CET on October 23, 2018.

IMPORTANT INFORMATION

The information in this press release does not contain or constitute an offer to acquire, subscribe or otherwise trade in shares, subscription rights or other securities in Saab Aktiebolag (“Saab AB”) in any jurisdiction.

This press release may not be released, published or distributed, directly or indirectly, in or into Australia, Hong Kong, Japan, India, South Africa, Canada, Singapore, the United States of America, including its territories and possessions, any state of the United States or the District of Columbia (the “United States”) or any other jurisdiction where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectuses, registrations or other actions in addition to what follows from Swedish law. Nor may the information in this press release be forwarded, reproduced or disclosed in a manner that contravenes such restrictions or would entail such requirements. Failure to comply with this instruction may result in a violation of applicable securities laws.

The securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (“Securities Act”), or under the securities laws of any state or other jurisdiction in the United States and may not be offered, subscribed, used, pledged, sold, resold, allotted, delivered or transferred, directly or indirectly, in or into the United States absent exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with securities laws of the relevant state or other jurisdiction in the United States. All offers and sales of securities in connection with any rights offer by Saab AB will be made, subject to certain limited exceptions, outside of the United States and in reliance on, and in compliance with, Regulation S under the Securities Act. There will be no public offering in the United States.

This press release may contain forward-looking statements which reflect Saab AB’s current view on future events and financial and operational development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”, “plan”, “estimate” and other expressions which imply indications or predictions of future development or trends, and which are not based on historical facts, are intended to identify forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements.