Dexia SA's shareholders approved the conversion of preference shares issued to the states of France and Belgium in 2012 into ordinary shares and the issuance of profit shares to the states.
The European Central Bank approved the treatment as common equity Tier 1 capital of the shares resulting from the conversion Nov. 27.
The conversion rate stands at 14.446 ordinary shares (currently category A shares) against 1 preference share (currently category B shares). The conversion is being carried out to ensure that the bank meets the capital ratios imposed by the ECB and to ensure burden sharing requirements imposed by the European Commission.
The profit shares to be issued to the states, bearing contingent liquidation rights, do not represent the shares of the Belgian bank but grant the states a right to benefit from a preferential distribution on the liquidation of Dexia.
Dexia's share capital now stands at €500 million, represented by 420,134,302 shares without indication of their nominal value.
