AstraZeneca PLC
31 January 2000
ASTRA AB
Compulsory Acquisition
Compulsory acquisition proceedings regarding the remaining
shares in the Swedish company Astra AB, now AstraZeneca AB,
('Astra') were commenced in April 1999. For this purpose,
an independent arbitration panel was established in Sweden.
AstraZeneca Holding AB ('AstraZeneca') has asked the
arbitration panel to decide that AstraZeneca is entitled to
acquire the remaining shares in Astra, not already owned by
the AstraZeneca group, at a redemption price of SEK 173.21
per share plus interest.
It is usual practice in compulsory acquisition proceedings
in Sweden for the arbitration panel to make its decision in
two stages. At the first stage it decides whether the
acquiring company has the right to acquire the remaining
shares and at the second stage, which is usually many
months later, it decides on the redemption price. The
redemption price is usually only paid after the second
stage.
To meet the concerns of some Astra shareholders and to
facilitate a fair and fast procedure, AstraZeneca has
accepted that it will pay the redemption price of SEK
173.21 per Astra share to Astra shareholders at the time of
the panel's first stage decision. If the panel decides at
the second stage that the redemption price should be higher
than SEK 173.21, a further balancing payment, together with
interest, will then be paid.
Unfortunately, such payment could not be made during 1999
to any of the 4,500 remaining Astra shareholders, due to
the fact that two minority shareholders - representing 33
and 720 shares, respectively - are challenging the
proceedings. Until the legal position is clarified it is
not possible to estimate when payment of the SEK 173.21
acquisition price will be made.
AstraZeneca regrets that the proceedings have been delayed
and the inconvenience that this has caused Astra
shareholders. AstraZeneca will continue to press for the
earliest possible reasonable resolution of the matter.
Shareholders in Astra should recognise, however, that
AstraZeneca does not solely control the proceedings.
AstraZeneca will keep Astra shareholders informed about
major events in the proceedings.
AstraZeneca Holding AB
31 January 2000
Further Enquiries:
Media:
Steve Brown, tel +44 171 304 5033
Lucy Williams, tel +44 171 304 5034
Mikael Widell, tel +44 171 304 5030
Investor Relations:
Michael Olsson, tel +44 171 304 5087
Elizabeth Sutton, tel +44 171 304 5101
Ed Seage, tel +1 302 886 4065
Jorgen Winroth, tel +1 609 896 4148
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