Yesterday, One United Properties held its GSM and EGSM meetings. During the EGSM meeting, the proposal for the share capital increase was approved. In this quick overview, we bring you all the details.
The latest OGSM and EGSM meetings were held yesterday by One United Properties, during which many resolutions were approved. The one we are most interested in, however, is the share capital increase by the Company. As a reminder, One proposed a share capital increase of up to RON 350m, by the issuance of 1.75bn new shares, with a nominal value of RON 0.2 per share.
The reason why this share capital increase was interesting is the way it was conceptualized. Firstly, while the share capital increases are usually done at market prices, this one performed by the Company was done at a nominal share price of RON 0.2 per share. This price actually refers to the first phase of the share capital increase, with 2 phases in total.
Going into a little more detail regarding these phases, in phase one, all the shareholders holding the Company’s shares as of 6 August 2024 (registration date) will be offered new shares for subscription from this share capital increase. To subscribe for one new share, each shareholder must hold 2.1879186 preference rights. The total number of preference rights issued will be equal to the number of shares issued by the Company, as registered on the registration date. As such, this was designed to give the existing shareholders the ability to participate in the share capital increase first (and as such, preference rights).
One also noted that trading with the preference rights could be done by shareholders, starting from 6 August 2024, and ending 32 calendar days after said date. The reason this was done is the fact that if an existing shareholder does not participate in the share capital increase, and does not sell away his preference rights, the share price for the shares the investor holds would be diluted.
Furthermore, according to the Company, the share capital increase was designed in such a manner to allow shareholders to participate in it at a lower price. One also noted that 60% of the amount has already been committed by the Company’s founders and several other members of the Board of Directors.
Moving on, during the second phase, any unsubscribed new shares in the first phase shall be offered via a private placement to investors from the EU and/or investors to whom such a private placement may otherwise be lawfully addressed. Also, the subscription price during the second phase shall be determined through the decision of the Board of Directors, considering the price during the book-building exercise carried out during the Private Placement.
If this share capital increase is achieved, One will raise RON 350m (app. EUR 70m), for the purposes of expanding the Company’s operations, towards many different avenues, including the recently announced expansion towards premium affordable housing.
