The rights issue, which ran from April 25-May 13, resulted in a 73.4% subscription rate, providing Rörvik with about SKr202m before transaction costs.
“We have, through our participation in the rights issue, increased our ownership to approximately 79% [50% previously], which supports the company’s ambition to participate in the consolidation of the sawmilling industry in southern Sweden,” said Sven Olsson, CEO of Rörvik’s principal shareholder Meerwind AB and the chairman of Rörvik.
Meerwind has an agreement with Rörvik concerning the remaining rights not subscribed, which means it will lend at least SKr73m to Rörvik to cover its working capital needs.
Rörvik will use SKr138m of the rights issue proceeds to repay short-term loans from Meerwind. The sawmiller, which operates seven sawmills with a 950,000m3 annual sawn timber capacity, recorded a pre-tax loss of SKr179m in 2012.
