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STOCKHOLM<\/span>, May 22, 2026<\/span> \/PRNewswire\/ — On April 23, 2026, the<\/b>\u00a0Board of Directors of<\/b>\u00a0AB Electrolux (“Electrolux Group”<\/b>\u00a0or the “Group”)<\/b>\u00a0resolved, subject to approval\u00a0<\/b>by\u00a0<\/b>the\u00a0<\/b>Extraordinary\u00a0<\/b>General\u00a0 <\/b>Meeting<\/b>\u00a0(the “EGM”)<\/b>\u00a0to be held on May 27,<\/b>\u00a02026,<\/b>\u00a0on<\/b>\u00a0a rights issue of Class A and Class B shares of approximately SEK 9<\/b>\u00a0billion<\/b>\u00a0before transaction costs (the “Rights Issue”).<\/b>\u00a0The Rights Issue, supported by<\/b>\u00a0AB<\/b>\u00a0Electrolux<\/b>\u00a0largest<\/b>\u00a0shareholder,<\/b>\u00a0Investor AB, is intended to<\/b>\u00a0finance and<\/b>\u00a0accelerate<\/b>\u00a0Electrolux<\/b>\u00a0Group’s<\/b>\u00a0profitable growth initiatives<\/b>\u00a0and<\/b>\u00a0expedite<\/b>\u00a0the achievement of<\/b>\u00a0its<\/b>\u00a0financial targets,<\/b>\u00a0as well as<\/b>\u00a0strengthen<\/b>\u00a0the<\/b>\u00a0Group’s<\/b>\u00a0balance sheet.<\/b>\u00a0Today, Electrolux Group announces the terms for the Rights Issue.<\/b>\u00a0<\/p>\n The Rights Issue<\/b>\u00a0terms<\/b>\u00a0in brief<\/b>\u00a0<\/p>\n Background and rationale<\/b>\u00a0and use of proceeds of the Rights Issue<\/b>\u00a0<\/p>\n On April 23, 2026, Electrolux Group announced\u00a0that it had entered into agreements with Midea\u00a0Group\u00a0to establish a highly complementary\u00a0long-term strategic partnership in North America and a plan to improve efficiency across its organization including a focused optimization of the Group’s global manufacturing footprint to further increase agility across the organization.\u00a0Against the background\u00a0of the strategic initiatives announced on April 23, 2026, the Board of\u00a0Directors\u00a0of AB Electrolux resolved on\u00a0the Rights Issue.\u00a0Following completion of the\u00a0Rights Issue,\u00a0Electrolux Group\u00a0will\u00a0raise\u00a0gross proceeds of\u00a0SEK\u00a09,062 million, before deduction of\u00a0transaction\u00a0costs.<\/p>\n The gross proceeds\u00a0will be used\u00a0to finance Electrolux Group’s profitable growth initiatives and strengthen the Group’s balance sheet. The Group intends to\u00a0allocate\u00a0the\u00a0gross\u00a0proceeds as follows:\u00a0<\/p>\n Please refer to\u00a0Electrolux Group’s\u00a0press releases\u00a0dated\u00a0April\u00a023,\u00a02026\u00a0(Partnership announcement<\/a>, and\u00a0Global organization and footprint optimization, and Rights Issue announcement<\/a>),\u00a0for more information\u00a0on the background and rationale for the Right Issue\u00a0and further details on the use of proceeds.\u00a0<\/p>\n Terms and conditions of the Rights Issue<\/b><\/p>\n Each existing share in AB Electrolux held on the record date, May 29, 2026, entitles to two (2) subscription rights. One (1) subscription right entitles to subscription for one (1) new share, whereby subscription rights of Class A entitle to subscription of shares of Class A and subscription rights of Class B entitle to subscription of shares of Class B.\u00a0Shares not subscribed for with primary preferential right shall be offered to all shareholders for subscription (subsidiary preferential right). Upon the transfer of subscription rights (representing\u00a0the primary preferential right), the subsidiary preferential right will also be transferred to the new holder of the subscription right. If not all new shares are subscribed for with subscription rights (primary preferential right), new Class A and Class B shares will be allotted by the Board, up to the maximum amount of the\u00a0Rights\u00a0Issue, in the following order (except for such shareholders who reside in certain unauthorized jurisdictions):<\/p>\n Firstly<\/i>, allotment shall be made to those who have subscribed for new shares with subscription rights (subsidiary preferential right), irrespective of share class subscribed for and regardless of whether they were shareholders on the record date or not. In case of oversubscription, allocation shall be made pro rata in relation to the number of subscription rights each one has exercised for subscription of shares and, if that is not possible, by drawing of lots.\u00a0<\/p>\n Secondly<\/i>, allotment shall be made to others who have applied for subscription of shares without subscription rights (the\u00a0general public\u00a0in Sweden and “qualified investors”). In case of oversubscription, allocation shall be made pro rata in relation to their applied interest and, if that is not possible, by\u00a0drawing of\u00a0lots.\u00a0<\/p>\n Thirdly<\/i>, allotment shall be made to Investor AB and\u00a0the\u00a0Underwriters\u00a0in accordance with\u00a0their respective\u00a0guarantee\u00a0undertakings.\u00a0<\/p>\n The Rights Issue is expected to increase\u00a0AB\u00a0Electrolux share capital by a maximum of SEK 2,951,906,720, from the current SEK 1,544,601,540 to not\u00a0more than SEK 4,496,508,260 through an issuance of not\u00a0more than\u00a0540,992,636\u00a0new\u00a0shares, of which\u00a0a maximum of\u00a016,383,608 new\u00a0Class\u00a0A\u00a0shares\u00a0and\u00a0a maximum of\u00a0524,609,028 new\u00a0Class B shares. After the Rights Issue, the number of shares\u00a0in\u00a0AB\u00a0Electrolux is expected to amount to not\u00a0more than 824,070,029 shares, of which not more than 24,575,412\u00a0Class A shares and 799,494,617\u00a0Class B shares.\u00a0<\/p>\n The new shares are issued at a subscription price of SEK 16.75 per\u00a0Class A and\u00a0Class\u00a0B\u00a0share, respectively. No commission will be charged.<\/p>\n The record date for participation in the Rights Issue is expected to be on May 29, 2026. The subscription period is expected to run from and including June 2, 2026, up to and including June 16, 2026, or a later date as resolved by the Board of Directors.\u00a0<\/p>\n Trading in subscription rights is expected to take place on Nasdaq Stockholm during the period from and including\u00a0June 2, 2026,\u00a0up to and including\u00a0June 11, 2026. Trading in BTAs (Sw.\u00a0betalda<\/i>\u00a0tecknade<\/i>\u00a0aktier<\/i>) is expected\u00a0to\u00a0take place on Nasdaq Stockholm during the period from and including\u00a0June 2, 2026,\u00a0up to and including\u00a0June 29, 2026.\u00a0<\/p>\n Shareholders who do not participate in the\u00a0Rights\u00a0Issue will have their holdings diluted by up to 65.65% percent (66.67% percent excluding treasury shares held by\u00a0AB\u00a0Electrolux) and voting rights diluted by up to 65.86% percent, but have the possibility to compensate themselves financially for the dilution by selling their subscription rights no later than June 11, 2026.\u00a0<\/p>\n The Rights Issue is subject to approval by the EGM to be held on\u00a0May 27, 2026.\u00a0The resolution on the Rights Issue\u00a0will also require that the EGM resolves to amend the limits for the share capital and the number of shares in the\u00a0company’s articles of association.\u00a0<\/p>\n The full terms and conditions of the Rights Issue as well as further information about Electrolux Group will be presented in the prospectus that is expected to be published on Electrolux Group’s website on May 28, 2026.\u00a0<\/p>\n Subscription and underwriting commitments<\/b>\u00a0<\/p>\n Investor\u00a0AB, holding\u00a017.94\u00a0percent of the shares and\u00a030.43\u00a0percent of the votes in\u00a0AB\u00a0Electrolux\u00a0(18.78\u00a0and\u00a031.54\u00a0percent, respectively, excluding treasury shares held by\u00a0AB\u00a0Electrolux), has undertaken to subscribe for its pro rata share of the Rights Issue. In addition, Investor\u00a0AB\u00a0has undertaken to guarantee subscription of\u00a018.78\u00a0percent of the Rights Issue. In total, Investor\u00a0AB’s undertaking encompasses\u00a037.56\u00a0percent of the Rights Issue. The Swedish Securities Council (Sw.\u00a0Aktiemarknadsn\u00e4mnden<\/i>) has – in relation to Investor\u00a0AB’s undertaking to subscribe for its pro rata share of the Rights Issue – granted Investor\u00a0AB\u00a0an exemption from the mandatory takeover bid requirement that would otherwise arise. Investor\u00a0AB\u00a0has also been granted such an exemption in relation\u00a0to\u00a0its undertaking to underwrite the Rights Issue, subject to (i) the shareholders of\u00a0AB\u00a0Electrolux being informed ahead of the EGM about the maximum ownership level that\u00a0Investor\u00a0AB\u00a0may reach upon utilization of its underwriting undertaking; and (ii) the EGM’s resolution to approve the Rights Issue being supported by shareholders representing at least two-thirds of both the votes cast and the shares represented at the EGM, whereby shares held and represented by Investor\u00a0AB\u00a0must be disregarded.\u00a0Investor AB’s guarantee undertaking is conditional upon said majority being received at the EGM.\u00a0Morgan Stanley,\u00a0SEB\u00a0and\u00a0Deutsche Bank\u00a0have\u00a0entered into\u00a0a\u00a0underwriting\u00a0commitment\u00a0with\u00a0AB\u00a0Electrolux, subject to customary conditions, covering the remaining\u00a0portion\u00a0of the Rights Issue, including\u00a0shares subject to Investor AB’s guarantee undertaking in the event the\u00a0above-mentioned\u00a0majority is not received at the EGM. The Rights Issue is thus fully underwritten.\u00a0<\/p>\n Based on the subscription price of SEK 16.75 per share of\u00a0Class A and\u00a0Class B, respectively, and assuming that the Rights Issue is subscribed only to the extent covered by subscription and underwriting commitments from Investor AB and the Underwriters, Investor AB would hold approximately 30.81% percent of the shares and approximately 41.58% percent of the votes in\u00a0AB\u00a0Electrolux following the Rights Issue.\u00a0<\/p>\n Lock-up undertakings<\/b>\u00a0<\/p>\n The Board members of Electrolux have undertaken not to, without the prior\u00a0written\u00a0consent from the Joint Global Coordinators, and with customary exceptions, sell their respective holdings of shares in AB Electrolux or\u00a0otherwise\u00a0enter into transactions with similar effect for a period of\u00a0180 days, starting\u00a0on the date falling immediately after the last day of the subscription period in the Rights Issue (June 16, 2026).\u00a0<\/p>\n Furthermore, Investor AB has similarly undertaken\u00a0not to,\u00a0without the prior written consent from the Joint Global Coordinators, and with customary exceptions,\u00a0sell\u00a0its\u00a0holding of shares in AB Electrolux or\u00a0otherwise\u00a0enter into transactions with similar effect for a period\u00a0ending\u00a0on the date falling\u00a0180 days\u00a0after\u00a0announcement of the final outcome of the Rights Issue,\u00a0expected\u00a0on or around June 22, 2026.\u00a0<\/p>\n In addition,\u00a0the Company has undertaken not to, without the prior written consent from the Joint Global Coordinators, and with customary exceptions,\u00a0issue or contract to issue\u00a0shares or other securities, or directly or indirectly sell, transfer, pledge, lien, charge, grant security or an option over, or enter into any other agreement or arrangement having a\u00a0similar effect for a period\u00a0ending\u00a0on the date falling\u00a0180 days after\u00a0announcement of the final outcome of the Rights Issue, expected\u00a0on or around June 22, 2026.\u00a0<\/p>\n Prospectus<\/b>\u00a0<\/p>\n Comprehensive information\u00a0regarding\u00a0the Rights Issue will be included in the prospectus which is expected to be published on or around\u00a0May 28, 2026.\u00a0<\/p>\n Indicative timetable for the<\/i><\/b>\u00a0Rights<\/i><\/b>\u00a0Issue<\/i><\/b>\u00a0<\/p>\n The timetable below is preliminary and may be subject to change.\u00a0<\/p>\n\n
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