Housing investment company Sato is planning to issue new shares in a bid to strengthen its financial position. The company aims to raise a maximum of 200 million euros through the share issue, which would provide more financing options for the business.
Sato’s largest shareholder, Balder Finland Otas AB, has announced its support for the share issue, and the company plans to announce an invitation to an extraordinary general meeting on Monday. The board of directors will be authorized to decide on the share issue at this meeting.
Current shareholders have subscription rights that allow them to collect up to 200 million euros in gross assets under the authorization of the general meeting. The proposal states that up to 56,700,000 shares may be issued under this authorization, which is equivalent to about one hundred percent of all the company’s shares.
The condition of the share issue is that Sato’s shareholders grant their approval at the general meeting, which will be held on December 11th. The offering is expected to be completed by February 24th, subject to market conditions.
As of September 30th, Balder owned 56.3% of Sato’s shares, with Stichting Depositary APG Strategic Real Estate Pool holding 22.6%, Elo Mutual Employment Pension Insurance Company owning 12.7%, and State Pension Fund owning 4.9%.