Shares of Finnish financial services and asset management group Mandatum fell markedly following a large share placement by private equity owner Altor.
Altor sold 35 million Mandatum shares at a price of €6.80 per share, generating approximately €238 million in gross proceeds, which the company press release said equates to roughly 2.5 billion Swedish crowns. The trade accounted for about 7% of Mandatum’s total share capital and was executed at an about 7% discount to the most recent closing price.
According to the announcement, Mandatum itself will not receive any proceeds from the sale. The offering was managed by Citi and SEB as joint bookrunners. The shares were placed with institutional investors located in Finland and across the Nordic region, along with other qualified international investors.
Following the disposal, Altor still holds 22.4 million Mandatum shares, representing roughly 4.5% of the company’s capital. The announcement noted that the remaining stake is subject to a 90-day lock-up agreement.
The immediate market reaction was negative for Mandatum equity, with the company’s shares sliding nearly 8% on the news of the block sale.
Context and mechanics
The transaction is a secondary sale by an existing shareholder rather than a primary issuance. As reported, the shares were offered to institutional buyers via a placement handled by the appointed bookrunners. The pricing included a discount relative to the last traded price, and Mandatum will not benefit directly from the funds raised by Altor.
What happened to Altor's stake
- Altor sold 35 million shares at €6.80 each, raising about €238 million.
- After the sale, Altor retains 22.4 million shares, equal to about 4.5% of Mandatum’s capital.
- The remaining shares Altor holds are under a 90-day lock-up.
Market reaction
Mandatum shares declined almost 8% following the announcement of the placement. The share price move reflected investor response to the sizeable block sale and the discount applied to the offering.
Key points
- Altor sold 35 million Mandatum shares at €6.80 each, raising about €238 million (approx. 2.5 billion SEK).
- The disposal equated to roughly 7% of Mandatum’s share capital and was priced at about a 7% discount to the latest close; Mandatum will not receive proceeds.
- Citi and SEB acted as joint bookrunners; shares were placed with institutional investors across Finland, the Nordics and other qualified international investors.
Risks and uncertainties
- Share price volatility - The stock fell nearly 8% on the news, indicating potential near-term volatility for Mandatum shares in response to large block transactions.
- Ownership concentration - Changes in significant shareholders’ stakes can alter market perceptions of control and liquidity; Altor retains a reduced stake (about 4.5%) with the remainder subject to a 90-day lock-up.
- Placement pricing - The roughly 7% discount to the latest closing price could affect valuation perceptions among institutional investors and influence secondary market trading.
Sectors impacted include financial services and asset management, with market effects primarily within Nordic equities and institutional investor activity.