Helsinki, Finland, 01 August 2011 -- (GLOBE NEWSWIRE) -- UPM has issued 5 million new shares to the direct and indirect owners of Myllykoski Oyj and Rhein Papier GmbH at a subscription price of EUR 10.84 per share.
The subscription price for the new UPM shares was paid by contribution of subordinated loan notes of Rhein Papier GmbH to UPM. As a part of the contractual arrangements relating to the Myllykoski transaction, a total of 211,481 UPM shares out of the new shares of UPM to be issued will be returned to UPM without consideration upon their issue.
UPM announced the share issue on 21 December 2010, as a part of the Myllykoski transaction agreed on the same day. The share issue decision is based on the authorization granted at the annual general meeting of shareholders of UPM to the board of directors of UPM on 22 March 2010. The transaction was concluded today and the contractual terms for the share issue have been fulfilled.
The subscription price for the new shares will be recorded into the invested unrestricted equity reserve of UPM. The new shares are expected to be registered with the Finnish Trade Register on 03 August 2011. Public trading in the new shares together with the existing shares is expected to commence on NASDAQ OMX Helsinki Ltd on 04 August 2011. The new shares carry a right to dividend and other shareholder rights as from their registration with the Finnish Trade Register.
Following the share issue, the number of issued shares of UPM will be 524,970,388. Each share entitles its holder to one vote at the general meeting of shareholders of UPM. Following the share issue, UPM holds 211,481 treasury shares.