CIMdata PLM Industry Summary Online Archive
October 28, 2004
Financial News
SAP Plans Change to Share Capital-Change to Result in 3 Additional Shares for Each Existing SAP Share Held
SAP announced it plans to propose a change to its share capital next year. The transaction would be structured for German company law purposes as an increase in subscribed capital from corporate funds pursuant to which each shareholder will receive three additional shares ("bonus shares" / "dividend stock") for each existing SAP share held. No new capital is being raised through this transaction. The executive board proposal was approved today by SAP's supervisory board and will be submitted for approval at next year's Annual Shareholder Meeting.
"We expect this measure will make the SAP share more attractive for investors, in particular individual shareholders", said Werner Brandt, Chief Financial Officer and member of the executive board of SAP AG.
If shareholders approve the capital increase at next year's Annual Shareholder Meeting, the numbers of shares held will increase fourfold automatically. Total shareholders' equity will not be affected since this measure simply involves a shift between individual components of shareholders' equity. The subscribed capital will rise to around 1,266 million euros from around 316 million euros at present. The number of SAP's outstanding shares, which each have a no-par value of 1 euro, will rise accordingly.
Note to holders of SAP ADRs representing SAP Ordinary Shares: If approved by SAP shareholders, each SAP ADR will represent one SAP Ordinary Share after giving effect to the transaction rather than 1/4 of one Ordinary Share today.
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