Swedbank shares

Swedbank has three types of shares, common shares (A shares), preference shares and C shares. The preference shares were issued in the 2008 rights issue. The common shares and the prefernce shares are listed and have equal voting rights. The C shares were issued and repurchased in May 2011 in order to hedge the arrangements related to Swedbank’s undertakings regarding the incentive programme for 2010. The C share is entitled to a tenth of a vote.

The preference shares

The preference shares have preference to an annual, non-cumulative, dividend of up to SEK 4.80 per preference share. In the event that there remain funds to be distributed, A shares get a dividend up to the amount the preference shares receive. Thereafter, any remaining dividend is divided equally between all shares irrespective of the type. Non-cumulative means that if no dividend is paid in previous years, it cannot be added to the dividend in subsequent years. More information about dividend.

Shareholders can voluntarily request to convert their preference shares to ordinary shares in February and August of each year. An application form to convert into ordinary shares is availible on the link below. It should be sent to the Board of Directors for approval and must be received by the Board of Directors no later than the last day of the relevant conversion period. The inquiry must cover the entire holding of preference shares. All outstanding preference shares will automatically be converted to ordinary shares in 2013. 
More information about conversion of the preference shares

The C shares

The reason for issuing C shares is to ensure the delivery of shares to the participants in Swedbank’s incentive programme for 2010, and to cover certain costs in connection with the programme. Before delivery to the programme participants, the C shares will be converted to ordinary shares.
Press release about the C share issue