Solidium to subscribe its pro rata entitlement and to participate in the underwriting arrangement
Solidium Oy has decided to participate in the €200 million rights issue announced today by Kemira Oyj. In conjunction with the issue, the four biggest shareholders of Kemira have committed to subscribe for new shares for approximately €146 million.
Solidium has committed to subscribe for Kemira’s new shares for its pro rata entitlement, corresponding to approximately €33 million. Furthermore, Solidium has given an underwriting commitment to subscribe for a maximum of approximately €16.5 million of Kemira’s new shares in the event that the shares offered in the rights issue are not fully subscribed for. Kemira will pay a fee for the underwriting commitment corresponding with the market practise.
“Kemira’s strategic decision to focus on water quantity and quality management provides good growth opportunities. We want to support the company’s development into a leading player in chemical water treatment. The rights issue will enable the company to carry out its growth strategy and lower its gearing to correspond to that of its peer group. The issue will also enable Tikkurila to be spun off and listed in a flexible manner”, says Kari Järvinen, Solidium’s Managing Director.
Kemira is focused on serving customers in water-intensive industries. The company offers water quality and quantity management that improves customers’ energy, water, and raw material efficiency. Kemira’s vision is to be a leading water chemistry company. Its turnover in 2008 was some €2.8 billion and its operating profit, excluding non-recurring items, amounted to €133 million. On 30 June 2009, Kemira group employed around 9,100 people in 40 countries. Solidium has a 16.52 % holding in the company prior to the rights issue.