On September 25, we announced that the Swedish Companies Registration Office has granted Transcom permission to execute a re-domiciliation of the parent company of the Transcom Group from Luxembourg to Sweden. The press release is available here. Let me give you a quick summary of what this means.
It all started in 1995
Transcom AB was originally set up in 1995 to provide customer service for Comviq’s mobile telephony customers in Sweden. Subsequently, Transcom Europe was formed to support expansion into new European markets. These two parallel Transcom organizations grew rapidly, and were merged at the end of March 2000 to form Transcom WorldWide S.A., headquartered in Luxembourg.
Moving the company to Sweden
Since 2001, Transcom has had its legal domicile in Luxembourg while being listed on a Swedish stock exchange. As a result of this set-up, the company has been bound to comply with regulations in both Luxembourg and Sweden. In order to align the legal domicile of the company with that of its owners (Transcom’s shareholders are predominantly based in Sweden), Transcom is planning to execute a re-domiciliation from Luxembourg to Sweden at the end of November 2014. If you are interested, you can find detailed information in this prospectus.
Benefits for our shareholders
Following the re-domiciliation to Sweden, general meetings of the shareholders will be held in Sweden rather than in Luxembourg. This will facilitate shareholder participation at general meetings. Furthermore, Transcom will no longer be bound by dual legal systems – Swedish and Luxemburgish – lowering costs and simplifying the execution of corporate actions.
Transcom’s listing set-up will also be simplified. The company today has its shares admitted to trading through Swedish Depository Receipts (SDRs). Following the re-domiciliation, the Transcom Group’s shares will be directly admitted to trading on NASDAQ OMX Stockholm, resulting in a simplified and less costly listing structure. In addition, there will no longer be two different share classes. One single class of shares will be established, offering the potential of increased liquidity.
Business as usual for our clients and their customers
While this re-domiciliation is a major change from the corporate governance and capital markets perspectives, it is business as usual from a business operations viewpoint. The new Swedish parent company of the Transcom Group (Transcom WorldWide AB) will take over all assets and liabilities of Transcom WorldWide S.A.
As always, we remain committed to delivering excellent service to our clients’ customers in a reliable, consistent and cost-effective way. Our mission is unchanged: Transcom enables companies to enhance their business performance by improving the experience of their customers.