LHV Group Launches Share Capital Increase to Empower Growth
Strategic Share Capital Increase by LHV Group
The Supervisory Board of AS LHV Group recently made a significant decision to increase the company's share capital by EUR 366,721.30. This decision was driven by the requirement to issue new shares to employees participating in the company's share options programme, which was initially approved during a general meeting and has since undergone amendments. A notable 163 employees, both current and former, took part in this subscription process, collectively acquiring an impressive total of 3,667,213 options, amounting to EUR 8,001,858.77. However, a total of 19,977 options will be cancelled as they remain unsubscribed.
Decisions Surrounding the Share Capital Increase
Here are the key decisions taken by LHV Group's Supervisory Board in relation to the share capital:
- The share capital will be raised to a total of EUR 32,785,614.60, marking a boost from the previous total.
- As part of this increase, LHV Group will create 3,667,213 new ordinary shares, each with a nominal value of EUR 0.1. The shares will be issued with a share premium, where the issue price for each share is established at EUR 2.182.
- According to the resolution made in the general meeting, employees eligible under the share options programme, as identified by the Supervisory Board, hold the pre-emptive rights to subscribe to these new shares.
- Importantly, shareholders not involved in the options programme will not have the right to subscribe to the new shares created through this capital increase.
- The share capital increase will be executed entirely through monetary contributions and had a set deadline for exercising the pre-emptive subscription rights. Participation was closed at the end of April, with most beneficiaries completing their subscription applications timely.
Any options that were not subscribed for will indeed be annulled, consolidating the share issuance process.
Registration and Rights of the New Shares
The additional share capital established by the option beneficiaries will be duly registered with the Estonian Central Register of Securities and the Commercial Register. Notably, this share capital increase does not introduce any special rights associated with LHV Group's ordinary shares, ensuring parity among existing shares. The newly issued shares will entitle holders to dividends starting from the financial year.
Listing of New Shares
The shares established through this increase will be listed on the Nasdaq Tallinn Stock Exchange the day after their registration, aligning them as equals with existing shares.
About LHV Group
LHV Group stands as Estonia's largest financial group, playing a pivotal role in the provision of capital. The group is comprised of key subsidiaries including LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. With a workforce exceeding 1,160 team members, the institution serves a substantial client base. Currently, LHV banking services support 465,000 clients, while its pension funds cater to 113,000 active members, alongside LHV Kindlustus, which safeguards around 174,000 individuals. The UK-based subsidiary, LHV Bank Limited, offers banking services primarily to financial technology firms and extends loan options for small to medium-sized enterprises.
For more information, you can reach out to Priit Rum, the Communications Manager of LHV Group:
Priit Rum
Communications Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
Frequently Asked Questions
What is the purpose of the share capital increase?
The share capital increase allows LHV Group to issue new shares as part of its employee share options programme.
How many new shares will be issued?
A total of 3,667,213 new ordinary shares will be issued under this initiative.
Who is eligible to subscribe to the new shares?
Only employees who are part of the share options programme will have the right to subscribe to the new shares.
What will happen to the unsubscribed options?
The unsubscribed options, totaling 19,977, will be cancelled.
When will the new shares be listed?
The new shares will be listed on the Nasdaq Tallinn Stock Exchange following their registration with the Estonian Central Register of Securities.
About The Author
Contact Kelly Martin privately here. Or send an email with ATTN: Kelly Martin as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
