Finland's Sponda makes e208m rights issue to re-finance debt

Finland's listed real estate group Sponda is to make a rights issue of e208m in the form of a maximum of 167m new shares, giving current stock holders pre-emptive right to subscribe in proportion to their current shareholding at a rate of three new shares for every two held. The subscription price of e1.25 per share compares with e2.16 on the exchange. The subscription period runs from 2 June until 22 June, and Sponda will announce the final results of the offering on or about 25 June. Assuming all the shares are subscribed, the gross proceeds received by Sponda will be e208.2m and Sponda intends to use the full amount of net proceeds to repay a portion of its debt. Sponda's largest shareholder Solidium Oy, which holds 34.3% of equity and voting rights, has confirmed it will subscribe pro rata share in the offering. The second largest Julius Tallberg-Kiinteistöt has confirmed it will subscribe for at least 5%. Ilmarinen Mutual Pension Insurance, the third largest, will subscribe pro rata.