Sandvik To Initiate Compulsory Acquisition of Seco Tools

Swedish engineering company Sandvik AB (SAND.SK) said Wednesday it now holds about 99.4% of the shares and 99.8% of the votes in Seco Tools AB (SECO-B.SK), and has therefore initiated a compulsory acquisition procedure and applied for the delisting of Seco Tool's class B shares from the NASDAQ OMX Stockholm exchange.

 
   MAIN FACTS: 

-On Nov. 7, 2011, Sandvik announced a recommended public offer to the minority shareholders of Seco Tools to acquire all remaining shares in Seco Tools.

-The acceptance period was extended on Jan. 16 to Jan. 26.

-During the extended acceptance period, Sandvik's offer for Seco Tools was accepted by shareholders representing 56,748,957 class B shares in Seco Tools, corresponding to 39.0% of the shares and 10.6% of the votes.

-Sandvik's board has resolved to issue 1,208,774 new Sandvik shares as consideration for Seco Tools shares tendered during the extended acceptance period. Settlement for these shares is expected to commence on or around Feb. 9.

-Payment for the subscribed shares during the extended period will be made by contribution of class B shares in Seco Tools.

-The value is estimated to correspond to a subscription price equal to Sandvik's Jan. 31 closing price of SEK100.50 on the NASDAQ OMX Stockholm exchange.

-In total, Sandvik (including subsidiaries) now holds 99.4% of the shares and 99.8% of the votes in Seco Tools.

-An Extraordinary General Meeting in Seco Tools will be held on Feb. 17 for the purposes of electing a new Board of Directors.

-By Anna Molin, Dow Jones Newswires; [phone]; [e-mail]