Verve Announces Directed Share Issue to Institutional Investors

Verve Group SE has announced its intention to issue approximately 27 million new ordinary A shares to institutional investors. This issuance, representing around 17 percent of the company’s outstanding share capital, will be conducted through an accelerated book-building procedure. The decision was authorised by the annual general meeting on June 13, 2024.

The proceeds from the directed share issue will support Verve’s acquisition of Jun Group. This move aims to maintain the company's capital structure with a mid-term Net Leverage ratio of 1.5-2.5x. The subscription price will be determined through the book-building process, which begins immediately and ends before trading on June 19, 2024.

Pareto Securities AB and Swedbank AB (publ) will manage the issuance process. The company’s two largest shareholders, Bodhivas GmbH and Oaktree Capital Management, have indicated significant interest in subscribing to the shares, likely boosting overall interest in the issuance.

The Board of Directors chose a directed share issue over a rights issue for its time efficiency and cost-effectiveness. They believe this approach will attract new institutional investors, enhancing liquidity and broadening the shareholder base.

Legal advisers for this transaction are Baker McKenzie for Verve and Gernandt & Danielsson Advokatbyrå for the managers. The shares' pricing reflects current market conditions and demand, determined through the book-building procedure.