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Re: Tom Joad post# 6137

Tuesday, 10/17/2017 5:36:24 AM

Tuesday, October 17, 2017 5:36:24 AM

Post# of 6624
Hi Tom, I read it differently.

For every ordinary share held on the record date, the holder will receive one (1) subscription right. Five (5) subscription rights entitle the holder to subscribe for one (1) new ordinary share.



This means that for every 5 shares you hold, you will be entitled to buy 1 additional share.

For existing shareholders who do not participate in the Rights Issue, a dilution effect arises corresponding to 16.67 percent of the total number of ordinary shares and votes in the Company after the Rights Issue.



1 new share / (5 old shares + 1 new share) = 16.67%

After issuing the new shares, the price should drop to around:
(5*340SEK+1*240SEK)/(5+1)=320SEK

However, if GE wants to increase its ownership, they will likely want to buy shares at higher prices if thats what it takes.

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