Statement re balance sheet
ABB Ltd
27 April 2006
ABB acts to further strengthen balance sheet
Company offers bondholders cash to convert $968-million 2007 bond into
underlying shares
Zurich, Switzerland, April 27, 2006 - ABB, the leading power and automation
group, said today it is offering holders of its $968-million 4.625-percent
convertible bond due in 2007 a cash incentive to convert their bonds into the
underlying ABB American Depositary Shares (ADSs).
The move is aimed at strengthening the company's equity base and further
reducing debt.
'This step will help us increase our equity to a level that is more in line with
the needs of a global industrial company,' said Michel Demare, ABB's chief
financial officer. 'Together with our recent credit rating upgrades and our
strong first-quarter results, this will improve our ability to carry out our
medium-term strategy of profitable growth.'
The offer begins today and ends at 5:00 p.m. CET on May 4, 2006.
Conversion of all bonds would result in the delivery of up to 107,198,228 ADSs,
which would increase the number of issued ABB Ltd shares by approximately 5
percent.
Further information on the planned transaction is available at www.ABBbond.com.
Barclay's Bank PLC, Deutsche Bank AG, and HSBC Bank plc are acting as Dealer
Managers of the offer. Acting as Co-Dealer Managers are Citigroup, Dresdner Bank
AG and KBC Financial Products.
ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impact. The ABB Group of companies operates in around 100
countries and employs about 105,000 people.
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Disclaimer
This press release does not constitute, or form part of, an offer to sell or a
solicitation of an offer to buy any securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
The Dealer Managers and the Co-Dealer Managers are acting for ABB Ltd and ABB
International Finance Limited and no one else in connection with the offer and
will not be responsible to anyone other than ABB Ltd and ABB International
Finance Limited for providing the protections afforded to its customers or for
giving advice or other investment services in relation to the offer.
This press release must be read in conjunction with the Offer Document, which
has been prepared by ABB International Finance Limited in relation to the offer.
This press release and the Offer Document contain important information, which
should be read carefully before any decision is made to accept the offer. If you
are in any doubt as to the action you should take, you are recommended to seek
your own financial advice immediately from an independent financial adviser.
Offer Restrictions
The offer is not being made, directly or indirectly, in or into, or by use of
the mails, or by any means or instrumentality (including, without limitation,
facsimile transmission, telex, telephone, internet, email and other forms of
electronic transmission) of interstate or foreign commerce, or of any facility
of a national securities exchange, of the United States or to U.S. persons (as
such terms are defined in Regulation S under the Securities Act of 1933, as
amended) and electronic acceptance instruction and conversion notices may not be
submitted by any such use, means, instrumentality or facility from or within the
United States or by U.S. persons. Accordingly, copies of this press release are
not being, and must not be, directly or indirectly, mailed or otherwise
forwarded, distributed or sent in or into or from the United States or to any
U.S. person and persons receiving this press release (including custodians,
nominees and trustees) must not mail or otherwise forward, distribute or send it
into or from the United States or to any U.S. person. Doing so may render
invalid any purported acceptance of the offer.
The communication of this press release is not being made, and this press
release has not been approved, by an authorised person for the purposes of
section 21 of the Financial Services and Markets Act 2000. Accordingly, this
press release is not being distributed to, and must not be passed on to, the
general public in the United Kingdom. Rather, the communication of this press
release is being made to, and is directed only at: (a) persons outside the
United Kingdom; (b) those persons falling within the definition of Investment
Professionals (contained in Article 19(5) of the Financial Services and Markets
Act 2000 (Financial Promotion) Order 2005 (as amended) (the 'Order')) or within
Article 43 or Article 49 of the Order, or other persons to whom it may lawfully
be communicated in accordance with the Order; or (c) any person to whom it may
otherwise lawfully be communicated (such persons together being 'relevant
persons'). This press release is only available to relevant persons and the
transaction contemplated herein will be available only to, or engaged in only
with, relevant persons. This press release must not be relied upon by persons
other than relevant persons.
The offer is not being made, directly or indirectly, in the Republic of Italy
and neither the offer nor any of the information contained herein are addressed
or constitute an offer or an invitation to offer to purchase or acquire the
Bonds, ADSs or ordinary shares of ABB Ltd directed, to any person (natural or
legal) in, or resident of, the Republic of Italy. No prospectus or offer
document will be lodged with, or registered by, the Commissione Nazionale per le
Societa e la Borsa (CONSOB) or the Bank of Italy in respect of the offer.
Accordingly, electronic acceptance instruction and conversion notices may not be
submitted from the Republic of Italy and neither this press release nor any
other material relating to the offer may be distributed or made available in the
Republic of Italy.
The offer and the distribution of this press release is also restricted by the
laws of Belgium, France, Germany, Guernsey and the Netherlands. Details of the
above offer restrictions are described in the Offer Document relating to the
offer.
Neither the Offer Document nor this press release constitute an offer or a
solicitation to purchase securities in Switzerland. Accordingly, the Offer
Document does not constitute a prospectus, as that term is understood under
article 652a and 1156 of the Swiss Code of Obligations.
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