I own some NetEnt AB shares. The company is listed at Nasdaq Stockholm Stock Exchange and currently one share is worth ~70 SEK.
Today I received a notification from the bank that NetEnt AB has decided on a stock split and automatic redemption on the following conditions:
Split terms: 1:1
Redemption terms: 1:1
Price per redemption share: 2.25 SEK
Preliminary pay-date: 2017-05-31
Trading with redemption shares: 2017-05-10 - 2017-05-23
The redemption shares will be redeemed for the price stated above without any action taken from the shareholder.
It is the first time I encounter redemption programme and I would like to know what are my options here. So far it looks to me like this is very similar to dividend - the company gave me some redemption shares for one month and they will buy them from me at the end of the month.
However if this is the case: how is this different from paying the dividend? And the follow up question: how (and with who?) can I trade these redemption shares during these 2 weeks in May? What is the point of trading them if they have fixed price?