The Ministry of Trade and Industry has decided to set the final offering price of the Fortum shares at FIM 32 per share. The indicative price range was FIM 27 - 33 per share. The Council of State approved the increase of the total number of the offer shares by 15 million shares. Of the increase 14 million shares will be used in the Retail Offering and one million shares in the Domestic Institutional Offering. In the Retail Offering the demand exceeded the indicative 8 million shares more than 5 times. In the Institutional Offering the demand exceeded considerably the indicative amount.
The total offering amounted to 81.7 million shares of which the Retail Offering is 22 million shares (27 percent of the total Offering) and the Domestic Institutional Offering 34.7 million shares (42 percent). The International Offering was 25 million shares (31 percent). In the Employee Offering the demand exceeded the indicative 2 million shares 1.5 times. In connection with the Offerings Fortum issues 91.3 million shares to subscribers in the Exchange Offer.
Investors in the Retail Offering can reduce their orders until December 11, 1998 by 16.30. The payment will be debited from the accounts on December 14, 1998.
The shares sold in the Retail and the Institutional Offerings will be transferred to the book-entry accounts on December 17, 1998. Due to the Finnish Central Securities Depository the shares from the Exchange Offer will be transferred to the book-entry accounts of the participants in the Exchange Offer on December 18, 1998. Because of the importance that all investors can begin trading at the same time the listing of Fortum is applied to begin at December 18, 1998.
The Board of Fortum has decided pursuant to the Employee Offering to issue 2 million new shares representing an increase in share capital of FIM 40 million. Issue price per share in the Employee Offering has been decided to be FIM 28.80, 10 percent lower than the offering price of the shares, pursuant to the terms of the Employee Offering. The Employee Offering ended December 10, 1998 at 16.30.
After the Exchange Offer and the Employee Offering the total amount of shares in Fortum will be 784.5 million. The ownership of the State of Finland will decrease from 97.5 percent to 75.5 percent.
The proceeds to the State of Finland from the Offerings will amount to FIM 2.7 billion. The total value of the 175 million shares sold in the Offerings and issued in connection with the Employee Offering and the Exchange Offer is FIM 5.6 billion. The market value of Fortum at the offering price of FIM 32 is FIM 25.1 billion. This makes Fortum one of the four largest companies on the Helsinki Exchanges.
Corporate Executive Vice President, Communications
The information contained herein is not for publication or distribution to persons in the United States of America. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended. The materials do not constitute an offer of securities for sale in the United States; the securities may not be offered or sold in the United States absent registration or an exemption from registration; and any public offering of securities to be made in the United States will be by means of a prospectus that may be obtained from the issuer or the selling security holder and that will contain detailed information about the company and the management, as well as financial statements.