Metsä Board €100 million share issue

Overview:

• Metsä Board, a Finnish paper and pulp company previously known as M-real Corporation, issued €100 million new Series B shares to its shareholders in proportion to their holding of existing Series A and/or Series B shares in the company.
• Gross proceeds of the share offering will be used to finance the company's transformation to a paperboard company.
• The share offering was oversubscribed by 39.8%.
• Metsä Board has two classes of shares but only Series B was offered as they have been historically more liquid and appealing to investors than the Series A shares.
• Metsäliitto Cooperative, together with its subsidiary, gave irrevocable undertakings to subscribe for the new shares in proportion to their current holdings in Metsä Board.

Wai Yee Tsang - Journalist