New share issue will strengthen SSAB – Dagens Industri

The main shareholders Industrivärden and Finnish government has undertaken to subscribe for the corresponding to their shareholding in SSAB. A group of banks guarantee the remaining sum. LKAB and Swedbank Robur, which together own 5.5 percent of the votes in SSAB, have declared their support for the rights issue and will vote for it at an extraordinary general meeting.

Previously CEO Martin Lindqvist said that SSAB will meet its obligations in 2016 without an issue.

What made you change your mind?

“I think , the timing is good. We are in a better position at the end of this quarter than at the end of the fourth quarter of 2015. Since this is a process where you get together banks and owners, it takes some time, “says Martin Lindqvist.

In addition to the rights issue was announced a refinancing package that according to the company removes the refinancing issue next 3-5 years, according to SSAB.

is this a crisis issue?

“No. We had been able to manage our maturity without it, “says Martin Lindqvist.

The new issue, the refinancing package and sale of non-core businesses will reduce net debt by more than 10 billion SEK and reduce gearing to around 30 percent. According to Friday’s report is SSAB’s net debt and net debt ratio of 23.2 billion or 53 percent.

Would not it be better to make a major new issue to have more dry powder?

“My assessment is that we will be financially much stronger, we have made major strategic investments. We will not buy any other large company. I feel that we are in very good shape, “says Martin Lindqvist.

SSAB also announced to raise the savings target by 300 million to 2.8 billion annually in 2017 .

Ruukki Construction’s , one of the non-core businesses such as SSAB intends to sell.

is a sales closer than a year ago?

“we did not buy Ruukki to access Ruukki Construction. Then when we started looking at Ruukki Construction, we saw that there was much to do. Then we decided to fix those things and then sell. From a corporate and shareholder perspective, I am quite sure that it was correct. since Ruukki Construction is in better shape than a year ago, we should be better paid, “says Martin Lindqvist.