SSAB think about – the course may fall – Business World

The steel company SSAB has long dismissed the idea of ​​a new issue. Now forced the company to reconsider. The share price should fall on Friday.

Steel company SSAB is among the winners of the big companies on the stock market so far this year an increase of 38 percent when the stock market as a whole is not even plus. The conditions are thus suitable for a rights issue – the exploitation of the higher share price for the dilution of the existing shareholders will not be too large.

speculation about an impending new issue of SSAB have succeeded each other in recent times but as late as October dismissed Martin Lindqvist, CEO at SSAB, the speculation in an article in Svenska Dagbladet.

– I do not see the need for it. We have good cash flows and we will continue to have it. We have backup facilities and cash funds that cover cases. So no, I see no need for it, he said then.

Now, the company will withdraw 5 billion by selling newly printed B shares. Some details of the subscription price and the dilution effect has not yet been published. The details will be in May. But it makes a calculation finds that the dilution effects will be substantial.

The share price of the B share ended on Thursday at 26.40 SEK A share of just over 31 crowns. A new subscription price must be low to no market price in daily trading slipping below the exercise price during the weeks leading up to those that the issue will be completed.

Assume that the subscription price later set to half the current share price, SEK 15. Then press SSAB 333 million new shares, which will be compared to the 549 million shares, both A and B shares, which the company has today.

If the subscription price instead set to SEK 10, which is not an unreasonable safety margin, pressed in place 500 million new shares and the current shareholders may in that event the right to buy one new share for one old. The dilution effect for those who do not pay their share of the issue thus becomes 100 percent.