Somewhat surprisingly, all founders and members of the Board of Directors of Nexam have jointly taken a decision to increase the diversification of ownership, due to, what they call “considerable institutional investor interest in Nexam Chemical shares.”
Founders and members of the Board of Directors have therefore sold a total of over 3.1 million of its shares, which on average equals 25% of each individual’s shareholdings, to selected institutional investors at a price of SEK 27.5 in an accelerated book building process undertaken after the market close on 15 July 2014.
That several large and reputable institutional investors are entering as shareholders is considered to create even more favorable conditions for both the company’s and the share’s future development.
Before the sale the founders and members of the Board of Directors owned approximately 12.5 million shares (24% of the total outstanding shares), following the sale these will collectively own 9.4 million shares (18% of the total outstanding shares).
All the founders and members of the Board of Directors that now sold shares have entered into an agreement (lock-up) with ABG Sundal Collier AB not to sell additional shares in Nexam Chemical during the coming 12 months and intend to remain as long-term owners in Nexam.
While the sale of shares by insiders is never a welcome incident, we believe that it was a necessary step ahead of the planned relisting of Nexam shares to Nasdaq OMX main list. That is also the message that Chairman of the Board, Lennart Holm, gave to a Swedish news agency this morning.
“It was a joint decision to sell. The main reason was that we wanted to give institutional investors the chance to come in. They were not interested to trade via the market and we are currently planning the listing on the main list. That is why we wanted to make sure that we have institutions on board” says Mr Holm. Without being able to give an exact date Mr Holm says that the relisting will “most likely take place early next year.”
Asked about which project will be the first to lead to volume production Mr Holm says: “I would not want to highlight any specific project as being the “big one”, all of them progress as planned and one of the positive things with Nexam is that there are several promising cooperations which go on in parallel.”
Continues Mr Holm: “It is hard to guess when we will be able to show a profit at the bottom line, but we hope that 2015 will be the year. That is what we have said before. We believe that once we have one to two projects up and running, revenues will come.”
For the long-term investor, today’s correction of currently around 8% could be an interesting entry point. Obviously, we would have prefered to see the institutional investors buying their shares over the market but hopefully, we will see some high-calibre names among the new owners which should increase confidence for Nexam as a company and case.