Elanders proposes rights issue of approximately SEK 215 million

Elanders AB announced on July 15, 2010, that its board of directors proposes a rights issue of approximately SEK 215 million (approximately EUR 24 million). The purpose of the issue is to strengthen the company's financial position and establish a platform for future growth.

Carl Bennet AB, the largest shareholder representing about 23% of shares and 50% of votes, has committed to fully guarantee the rights issue. An extraordinary general meeting is scheduled for August 23, 2010, to vote on the proposal.

The printing group, which operates in ten countries, experienced weak demand from industrial customers, particularly in the automotive and consumer electronics sectors, during the first half of 2010. However, Elanders noted a recovery in order intake and increased production capacity utilization in the second quarter.

The terms of the rights issue allow existing shareholders to subscribe for one new share for each share they hold, at a subscription price of SEK 22 per share. The subscription period will be from September 6 to September 20, 2010. Avanza Bank is acting as financial advisor, and Vinge as legal advisor.