Enviro share issue funding JV, operations

Scandinavian Enviro Systems (Enviro) has issued 150,000,000 shares via a directed share issue at a subscription price of SEK 2.00 per share. Enviro intends to use 75 per cent of the SEK 300 million (£23.4 million) raised to acquire shares in the previously announced, Michelin-supported joint venture with Antin Infrastructure Partners and to finance the JV’s first facility. The remaining 25 per cent will finance the company’s operations for at least 24 months.

The directed share issue was “heavily oversubscribed” and Enviro reports that it brought in a number of new institutional investors, including Cicero Fonder, Coeli Circulus, Handelsbanken Fonder, Skandia and Öhman Fonder. “I am very pleased with today’s transaction, another milestone achieved, and a token of Enviro’s ability to attract several high-quality institutional investors supporting our investment case,” stated Alf Blomqvist, chairman of Enviro, after the issue on 4 May. “We now have the financial flexibility allowing us to accelerate the pan-European expansion of tyre recycling plants, together with our joint venture partners, while focusing on our core competencies, and continue our journey towards making the tyre industry circular.”

The directed share issue increases the number of shares in Enviro to 806,615,589 and the share capital increases by SEK 6,000,000, to SEK 32,264,623.56 (£2,513,327).

30% ambition

The joint venture agreement with Antin Infrastructure Partners gives Enviro the option of acquiring up to 30 per cent of the capital and the votes in the joint venture company during a certain period and at certain terms. Enviro confirms that it “has the ambition to own 30 percent of shares” in the company, and its Board of Directors examined several options for securing financing before deciding that the chosen method would best allow it to meet its financing needs.