Cloetta outlines terms for SEK 1,050 million rights issue
Confectionery company Cloetta has detailed the terms for its proposed rights issue of approximately SEK 1,050 million, intended to finance its merger with LEAF. The issue requires shareholder approval.
Cloetta AB has announced the specific terms for a proposed rights issue amounting to approximately SEK 1,050 million. This capital raise is intended to fund the company's merger with LEAF Holland B.V., a transaction first announced in December 2011.
The terms of the rights issue are subject to approval by shareholders at an extraordinary general meeting scheduled for February 15, 2012. Each existing Class A and Class B share will entitle the holder to one subscription right. Four subscription rights will be needed to subscribe for one new share of the respective class. The company plans to issue a maximum of 9.44 million Class A shares and 91.06 million Class B shares.
The subscription price for the new shares has been set at SEK 10.79 per share. AB Malfors Promotor, Cloetta's largest shareholder holding approximately 52% of the share capital, has committed to vote in favor of the merger and subscribe for its pro-rata share of the rights issue. Additionally, AB Malfors Promotor and the main shareholders of LEAF, funds advised by CVC Capital Partners and Nordic Capital, have agreed to underwrite the remainder of the issue, ensuring full coverage.
The record date for the rights issue and the subscription period are expected to occur in March 2012. As part of the consideration for the LEAF acquisition, CVC and Nordic Capital will also receive Class C shares in Cloetta, representing a significant stake post-merger and rights issue.