Baltika’s CEO: the successful issue of shares shows that the stockholders have faith in Baltika
“That the issue of Baltika’s shares ended in oversubscription is a strong confirmation of the shareholders’ support for the company’s bold plan for the coming years. Now we have the tools to carry out Baltika’s turnaround,” confirmed the company’s CEO Mae Hansen.
During the issue, Baltika offered 50 million new shares with the aim of raising the share capital by five million euros. An even greater number, 53,379,570 shares in total, were subscribed for during the subscription period, which is 5,337,957 euros in monetary terms. At the beginning of the next week, the Management Board of Baltika will approve the share allocation based on the rules set down in the prospectus.
The proceeds from the share issue will be used by Baltika to implement changes and make investments as well as to fulfil its financial obligations. “The purpose of the public offering was to increase the share capital of Baltika in order to restructure the company. As a result of the successful issue, we now have the tools to make the larger changes by the end of the next year and celebrate the first significant wins in 2020,” said Hansen.
According to Baltika’s CEO, the action and financing plan for the coming years is one of the most radical steps in the company’s history and strategic changes are well under way. Hansen emphasized that she does not believe in turning around a business that focuses solely on cost-savings. “You have to make investments, which requires funds. Baltika’s product development needs to become radically more efficient and customer-centric, the entire organization needs to be digitalized, a clearer focus on the brand portfolio and geographical distribution needs to be created, and the retail management has to be restructured,” Hansen explained.
Last month, the company announced that as the next step in its radical turnaround, its brands Mosaic, Bastion, and Monton will be merged in stages over half a year under name of the most well-known one, Monton.
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