Finnforest parent Metsäliitto is to launch a rights issue to raise cash for new business operations.
The announcement was made as the group posted higher than expected fourth quarter profits, though it still recorded a loss of €84m during 2009. The capital programme will strengthen the company’s equity, Metsäliitto said, but the assets accrued would be used mostly for financing new operations.
No announcement was made about how much would be raised or what projects were in the pipeline.
Upper limits to share ownership have been removed so that shareholders can subscribe to additional A and B shares and new C additional shares.
Group sales last year were down around a third at €4.8bn from €6.4bn in 2008 although profits for the last quarter were €35m, up from €9m during July to September.
Metsäliitto expected the final quarter would fall behind third quarter levels for seasonal reasons. The rise was due to pulp prices developing more favourably than forecast, improved mill utilisation rates and internal profit improvement measures.
