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SAP Plans Change to Share Capital |
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Change to result in 3 additional shares for each existing SAP share held
WALLDORF - October 28, 2005 - SAP [NYSE: SAP] announced today 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 from around €316 million at present. The number of SAP’s outstanding shares, which each have a no-par value of €1, 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.
About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 29,800 customers in over 120 countries run more than 100,600 installations of SAP® software—from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale solutions for global organizations. Powered by the SAP NetWeaver™ platform to drive innovation and enable business change, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.”
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