Report from Telia's Annual General Meeting, May 10, 2001
Board of Directors:
Lars-Eric Petersson, Carl Bennet, Ingvar Carlsson, Anders Igel and Birgitta Johansson-Hedberg were reelected members of the Board. Jan-Åke Kark had declined reelection. Peter Augustsson, Marianne Nivert, Lars Olofsson and Caroline Sundewall were elected new members of the Board.
The Meeting approved a dividend for 2000 of SEK 0.20 per share and an extra dividend of SEK 0.30 per share, totalling a dividend of 0.50 per share, with a record date of May 15, 2001. With this record date, the dividend is expected to be paid by VPC (The Swedish Security Register Centre) on May 18, 2001.
Employee options program:
The Annual General Meeting approved in accordance to the proposal by the Board to implement an employee options program with the following main terms and conditions;
The stock options program shall encompass about 16,000 employees. This includes all employees on a permanent employment basis in the Telia Group except employees in those companies in the Equity business area that are subject to a broadening of ownership. In companies in the Equity business area in which no broadening of ownership occurred not later than January 1, 2002, the permanent employees shall be included in the stock options program. A maximum of about 5,000 employees in these companies could be added. The offering is not being made to employees in those countries where it is considered unsuitable to allot stock options for legal, tax or administrative reasons.
The stock options shall be allotted at no charge, whereby each affected employee shall receive 1,000 stock options.
The stock options program shall comprise a total of not more than 21,000,000 stock options. Each stock option shall carry entitlement to exercise of one warrant for subscription of a new share in Telia AB at a subscription price equalling 115 per cent of the average quoted price of the Telia-share on the Stockholm stock exchange during the period May 14 - May 18, 2001. The stock options shall not be considered securities and it shall not be possible to transfer them to a third party.
The option-holder shall have the right to exercise the allotted stock options not earlier than May 31, 2003 and not later than May 31, 2005. This is mainly under the condition that such persons at the time of exercise are employed within the Telia Group.
In order to implement the stock options program the General Meeting decided to issue debentures with detachable warrants for subscription of new shares. The nominal amount of the debentures shall amount to a maximum of SEK 275,000 and the number of detachable warrants shall amount to a maximum of 27,500,000 warrants. 21,000,000 of the warrants are issued so that Telia may fulfil the commitment to the employees arising from the stock option program and 6,500,000 warrants are issued in order to be sold to offset the effect of the costs for social fees that may arise as a result of the stock options program if the price of the Telia-share increases.
The total number of warrants will equal 0.9 per cent of the number of outstanding shares if all warrants are exercised.
The Annual General Meeting resolved to establish a nominating committee, which will consist of representatives from the four largest shareholders in the Company from time to time, plus the Chairman of the Board. The primary purpose of the committee will be to nominate board members and present proposals regarding board member compensation.
Telias Press Office, +46 8 713 58 30
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