Listing the Sampo A share on Nasdaq Stockholm

As Sampo is considering listing its A share directly on Nasdaq Stockholm, Swedish Depositary Receipt (SDR) holders may wonder what this means for them. In this blog entry we address the main questions regarding the potential A shares listing on Nasdaq Stockholm.

Why is Sampo considering terminating the current SDR arrangement?

Euroclear Sweden’s revised policy has made it possible for Sampo to pursue a direct listing of the Sampo A share on Nasdaq Stockholm, replacing the current SDR arrangement with SEB.

A direct listing in the Swedish market will create a consistent Nordic presence across Nasdaq Helsinki, Nasdaq Copenhagen and Nasdaq Stockholm, and will offer certain advantages for Sampo and its shareholders, including a smaller tick size on Nasdaq Stockholm compared with that applicable to the SDRs.

What would the change mean for me as an SDR holder?

The conversion will be carried out automatically for all SDR holders. It does not require any action from an SDR holder. Underlying Sampo A shares will be automatically delivered to the same securities account as your SDRs are held on the record date.

Once the conversion is complete, you will hold Sampo A shares directly, and they will be tradeable on Nasdaq Stockholm in the same way your SDRs have been.

Holders of Sampo A shares will have full economic and governance rights, rather than exercising such rights as an SDR holder through SEB as an intermediary.

How many A shares will I receive for each SDR?

Each SDR corresponds to one underlying Sampo A share.

Will there be any costs or fees for me as an investor?

Sampo, Euroclear Sweden and SEB will not charge any fees for the conversion. However, the conversion may be subject to costs or fees charged by your custodian bank or nominee account holder in line with their respective fee schedules. In this case, we recommend that you contact your custodian bank or nominee account holder to confirm whether any such charges apply to you.

What is the tax treatment of shares compared to that of SDRs?

The conversion of the SDRs to underlying Sampo A shares will not trigger any directly associated Swedish tax consequences for SDR holders. The withholding tax treatment of dividends will not change in comparison to owning an SDR.

What are the key dates to be aware of in the process?