Note 18 Shareholders' equity

           
Shares issued (SEK million)       Number of shares paid Par value
MTG Class A       15,091,426 75
MTG Class B       50,798,949 254
MTG Class C       480,000 2
Total number of shares issued/total par value as per December 31 2008       66,370,375 332
           
The holder of an MTG Class A share is entitled to 10 votes, the holder of an MTG Class B share one vote and MTG Class C share one vote. Class C shareholders are not entitled to dividend payments.
           
    Class A shares Class B shares Class C shares Total
31 December 1997   15,123,741 44,573,991   59,697,732
New share issue 2000   5,410,532 1,266,892   6,677,424
31 December 2000   20,534,273 45,840,883   66,375,156
Conversion of Class A shares to Class B shares 2001   -4,988,652 4,988,652   -
31 December 2001   15,545,621 50,829,535   66,375,156
New share issue 2006, exercise of stock options issued 2001   - 667,368   667,368
31 December 2006   15,545,621 51,496,903   67,042,524
New share issue 2007, exercise of stock options issued 2001   - 29,016   29,016
Conversion of Class A shares to Class B shares, 2007   -303,953 303,953   -
Repurchase of Class B shares 2007   - -719,000   -719,000
31 December 2007   15,241,668 51,110,872   66,352,540
New share issue 2008, exercise of stock options issued 2005     335,835   335,835
New share issue 2008, share option plan issued 2008       480,000 480,000
Conversion of Class A shares to Class B shares, 2008   -150,242 150,242   -
Repurchase of Class B shares 2008     -798,000   -798,000
Shares outstanding 31 December 2008   15,091,426 50,798,949 480,000 66,370,375
           
Legal reserve          
The legal reserves in the parent company are legal statutory reserves in accordance with the Swedish Company Act. In 2008 and 2007, the legal reserves were reduced and transferred to retained earnings.
           
Paid-in capital          
The paid-in capital arise when shares are issued at a premium, i.e. shares were paid at a higher price than the quotient value.
Translation reserve in equity          
Translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations in the consolidated accounts.
Group (SEK million)       31 December 2008 31 December 2007
Opening balance, 1 January       6 -67
This year's translation differences       1,347 76
Realised accumulated translation differences by sale of shares in Group companies       149 -3
Total accumulated translation differences, 31 December       1,502 6
           
MTG hedges the book value of the net investment in Nova against fluctuation in currency rates, that is, the risk related to changes in currency rates between the Swedish krona and Bulgarian leva. In relation to the acquisition MTG raised a euro loan which is recognised as hedging instrument for part of the investment.
Hedging reserve          
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.
Group (SEK million)       31 December 2008 31 December 2007
Opening balance, 1 January       3 -18
Recognised direct in equity       31 39
Recognised in the income statement       93 19
Transferred to the acquisition value of item hedged       -94 -37
Closing balance, 31 December       33 3
           
Fair value reserve          
The fair value reserve includes the cumulative net change in the fair value of available-for-sale investments until the investment is derecognised. If a decrease in values have occurred for a longer period of time, the change is charged to the income statement and will therefore not be recognised in the reserve.
Revaluation reserve          
The revaluation reserve includes revaluation of trademarks in relation to successive share purchase.
Retained earnings          
Retained earnings comprise of previously earned income.
Minority interest          
In subsidiaries not wholly owned, the share of equity owned by external shareholders is recorded as minority interest. If the shareholders' equity is negative, a receivable is reported for the minority to the extent that minority owners are expected to contribute their share.
           

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