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Press Release

Solon Eiendom ASA : Directed share issue towards Vatne Equity

Solon Eiendom ASA
Posted on: 18 Dec 17

(Oslo, Norway, 18 December 2017) Solon Eiendom ASA today announced that Vatne Equity AS, a company controlled by Runar Vatne, has agreed to subscribe 4,859,358 new shares (the "New Shares") in Solon Eiendom ASA ("Solon" or the "Company") at a subscription price of NOK 19.50 per share, totalling approximately NOK 95 million in a directed share issue. The funds from the transaction will provide the Company with additional financing to pursue its growth strategy and acquisition of real estate plots, and will also be used for general corporate purposes.

"Solon has over time used significant efforts in order to further strengthen its strategic position and robustness in its business model to deliver high quality real estate projects. To have Vatne Equity AS, with Runar Vatne as a driving force, on board with Solon echoes the recognition of Solon's efforts to establish the Company as a key player within Norwegian real estate. Vatne Equity will provide Solon with additional financial resources, know-how and network to further develop the success of Solon. We are very pleased that Vatne Equity has chosen to take a major position in Solon and look forward to working together to build the Company further", says Simen Thorsen, Chairman of the Board of Directors of Solon.

Runar Vatne further states that:

"We have a long standing relation with the founders of Solon Eiendom, going back to before the founding of the Solon in 2006. The Company has a proven track record of identifying and acquiring the right projects at the rights price, and has managed to provide a product requested by its customers. As a result, Solon has the highest margin in the market since its inception. In addition, Solon has satisfied customers and close to zero detentions or conflicts. Today, the Company has a unique platform to further build its operations. Solon has the people, systems and routines to develop and complete projects with the best margins and the most satisfied customers. Our investment provides Solon with additional capital, inter alia, for further investments in real estate plots. We believe there will be opportunities for good plot acquisitions the coming year, and are looking forward to contribute to Solon as a long term strategic investor to successfully reach its goals."

Vatne Equity AS has expressed a strong desire to take a seat at the board of directors of Solon, represented by Runar Vatne, in order to be in the best possible position to contribute to the further growth of the Company. The nomination committee of Solon has expressed its support of electing Runar Vatne to the board, and Solon expects that the nomination committee will assess the composition of the board on this basis.

In accordance with the authorisation granted to the Board of Directors at the Company's Annual General Meeting held on 23 May 2017, the Board of Directors has resolved the issuance of 4,859,358 New Shares, equal to approximately 10% of the outstanding share capital in the Company. The share issuance will be carried out as a private placement to secure Vatne Equity AS as a long term strategic shareholder in Solon and to facilitate the opportunity to raise capital without the discount typically seen in rights issues. As a consequence, the Board of Directors of the Company has resolved to set aside the pre-emptive rights of the existing shareholders. The Board of Directors considers this to be in the best interests of the Company and the shareholders.

Following the completion of the offering and the issue of the New Shares, Solon's share capital will increase by NOK 4,859,358 to NOK 53,454,414, comprising 53,454,414 shares with a nominal value of NOK 1.00 per share. It is expected that the New Shares will be issued and registered on or about 28 December 2017.

Arctic Securities AS (the "Manager") acted as financial advisor to the Company in connection with the private placement.

For further information, please contact:

Andreas Martinussen, Chief Executive Officer, Solon Eiendom ASA
Tel: +47 400 00 405, email: am@soloneiendom.no

Scott Danielsen, Chief Financial Officer, Solon Eiendom ASA
Tel: +47 952 55 620, email: sd@soloneiendom.no

About Solon Eiendom
Solon Eiendom is a Norwegian residential real estate development company focusing on the Oslo and Akershus region.

This information is subject of the disclosure requirements acc. to §5-12 (Norwegian Securities Trading Act).

SEA20171218_SolonEiendom_Directed_Shareissue_VatneEquity


This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Solon Eiendom ASA via GlobeNewswire
HUG#2156694
GlobeNewswire
globenewswire.com

Last updated on: 19/12/2017

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