Group's equity ratio to 15%
Saunalahti Group Oyj's directed tender issue, which ended on 15 August 2003, was more successful than expected. The shareholders' equity is strengthened by almost EUR 4.2 million. Saunalahti Group issues 9.3 million new shares the confirmed subscription price being EUR 0.45 per share. The funds from the share issue will be utilised to strengthen the growth of the company.
At its meeting today, Saunalahti Group's Board of Directors has decided to confirm the subscription price of the tender issue as EUR 0.45 and thus to cut out the subscriptions made for a lower price. The subscription price exceeds the minimum price of EUR 0.38 confirmed by the extraordinary general meeting on 11 July 2003 by EUR 0.07. The share issue was oversubscribed at the price of EUR 0.38.
Based on the confirmed subscriptions, Saunalahti Group will issue 9.3 million new shares. The shareholders' equity will increase by almost EUR 4.2 million. Saunalahti Group's solvency will improve by EUR 3.5 million compared to the situation prior to the share issue. The share issue increases the Group's equity ratio including the capital loans from three per cent to 15 per cent according to the balance sheet in June 2003.
Prior to the start of the share issue, Saunalahti Group received underwritings of EUR 3 million in total as a conditional guarantee from three of its shareholders belonging to the company's close stakeholders. The subscription price according to the underwritings was EUR 0.38. The underwritings were made for 8.1 million shares. The subscriptions now approved by the Board of Directors do not include subscriptions based on the original underwritings. The total number of subscriptions made by the underwriting parties at higher subscription prices, which have now been approved, is 4.9 million shares.
In addition to the approval of the share subscriptions, the Board of Directors has decided to increase the company's share capital due to the partial conversion into shares of the Convertible capital loan 2002 I issued according to the decision of the company's extraordinary general meeting on 8 February 2002. The company's Board of Directors has been notified that a total capital of EUR 897,600 of the above-mentioned convertible bond has been requested to be converted into shares. This corresponds to 1,760,000 shares. After the made conversions, the entire Convertible capital loan 2002 I has been converted into shares.
At the moment, the company has 107.4 million shares. There is a pending registration of a conversion of 0.8 million shares confirmed on 7 August 2003. Based on the share issue approved today, 9.3 million shares will be issued. In addition, 1.76 million shares will be issued based on the made conversions. Due to the increases of share capital decided upon today, the number of shares will be increased by 11.06 million shares. Based on all measures, the number of shares will be 119,260,738. The share capital will be increased to EUR 1,192,607.38.
The new shares issued due to the share capital increases decided upon today will be traded on the Helsinki Exchanges as of the turn of September-October approximately.
"The outcome of the share issue clearly exceeded the expectations we had back in June. The amount of funds we obtained for the development of the operations is higher than expected. Saunalahti Group's improved operational outlook as well as the positive development of the company's share price in July increased the interest towards the tender issue. During the upcoming months, we will target our investments mainly to the strongly growing GSM operations and, on the other hand, to the strengthening of our market position within the broadband market," says Matti Vikkula, CEO of Saunalahti Group.
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