Orascom gives details of capital increase
Real estate developer Orascom Development Holding AG (ODH) has published the terms of its planned capital increase. Accordingly, approximately 11.86 million new registered shares are to be issued at a price of CHF 11.28 per share.
ODH's board of directors set the issue price below par and at a slight premium to the 30-day volume-weighted average price (VWAP) at CHF 11.28 per share, ODH says. The transaction would increase the company's equity by CHF 133.8 million before deducting transaction fees. This increase, it said, would come from a CHF 49.6 million inflow of new money and a CHF 84.2 million conversion of a loan from major shareholder Samih Sawiris into equity. The remaining part of the capital increase is a conversion of available reserves into share capital.
ODH shareholders will receive one subscription right for each registered share they hold on December 7, 2015 (after close of trading). Twelve subscription rights grant the holder the right to acquire five new registered shares against payment of the issue price.
The subscription rights will be exercisable between December 8 and December 14. Subscription rights that have not been exercised by the end of the exercise period will expire without compensation. The listing and the first trading day of the new registered shares on the SIX Swiss Exchange are expected to take place on December 16, 2015.
Samih O. Sawiris has indirectly committed through controlled companies to fully exercise the subscription rights to which he (or his companies) is entitled in the context of the capital increase by offsetting existing loans to ODH against the aggregate issue price of the entitled shares. In addition, Sawiris, through a company controlled by him, will be offered to acquire all new shares for which existing shareholders have waived the exercise of their subscription rights in the rights issue at the same issue price as the existing shareholders. (ah)
