Disciplinary Committee at OMX Nordic Exchange Stockholm fines Midelfart (2/08)

The listed company Midelfart Sonesson AB (“Midelfart”) has contravened the rules that apply at OMX Nordic Exchange Stockholm by failing to handle price-sensitive information in the correct manner. The Exchange’s Disciplinary Committee has ruled that Midelfart must pay a fine corresponding to two annual fees, totaling SEK 384,000.

In accordance with OMX Nordic Exchange Stockholm’s listing agreement, all information affecting the valuation of the company’s share to a non-immaterial degree must be disclosed immediately.

In an arbitration ruling announced on July 20, 2007, a subsidiary of Midelfart was ordered to pay SEK 17 million. Midelfart, which was notified of the arbitration ruling on July 21, 2007, did not submit any public information regarding the transaction until August 23, 2007, when the company presented its interim report.

The Disciplinary Committee has concluded that in the interim report the amount adjudicated by arbitration was reported as a nonrecurring charge for the second quarter of 2007 and that Midelfart reported an operating loss of SEK 16 million for that quarter. In light of this, the outcome of the arbitration ruling must be considered of material significance to the valuation of the company’s share. It is worth noting that the arbitration ruling was included in the interim report as a significant event after the end of the period.

Accordingly, information concerning the arbitration ruling should have been disclosed immediately upon the company learning of the judgment. By failing to do so, Midelfart has contravened the rules and regulations of the listing agreement. This remains true despite the information Midelfart had provided concerning the arbitration in its annual reports for 2005 and 2006.

The Disciplinary Committee sentences Midelfart to a fine corresponding to two annual fees, which totals SEK 384,000.