The Board of NHST Media Group proposes rights issue of NOK 50 million

NHST Media Group’s results for the first quarter of 2020 showed that revenues were significantly impacted by the global Covid-19 pandemic, particularly related to income from advertising and conferences. The Board of NHST proposes to the general meeting to strengthen the Group’s equity and liquidity through a fully underwritten rights issue of NOK 50 million.

The Group has initiated a comprehensive program to reduce costs during the covid-19 pandemic by more than NOK 100 million with effect in 2020. The measures will ensure that NHST Media Group can continue investing in high-quality journalism, product development and the organization, despite the challenging market conditions.

In addition, the Board proposes a rights issue with gross proceeds of NOK 50 million.

NHST Media Group’s bank, DNB, has accepted to extend the maturity of the Group’s NOK 250 million credit facility with one year, until the end of 2022, in addition to certain amendments to the loan agreement.

- We are very pleased that our owners and our bank will contribute to the NHST Group`s operations through the Covid-19 crisis in a way that secures our competitiveness and ability to innovate going forward. Our owners’ financial support will make it possible to further develop our companies and protect key market leader positions in the years to come. I also want to take this opportunity to thank NHST’s employees for their contributions during difficult times, and particularly for their ability to deliver good journalism and user experiences from their home offices around the world, says Hege Yli Melhus Ask, CEO of NHST Media Group.

Subject to restrictions imposed by applicable securities law, the offer to participate in the rights issue will be given to all shareholders per June 5, 2020 who are registered in the VPS (Norwegian Central Securities Depositary) as per June 9, 2020. The rights issue is proposed to consist of the issuance of up to 312,500 new shares, each with a nominal value of NOK 10 and a subscription price of NOK 160. The subscription period will take place during two weeks in June 2020, with expected start on June 10. The proposed rights issue will be presented for approval to the General Meeting to be held on June 5 2020 at 10 a.m. in the Group’s offices in Oslo.

In connection with the rights issue, the Group has entered into agreements with Bonheur ASA, Must Invest AS, Falck Frås AS, Gunvor Røed, Amble Investment AS, AS Straen and M&G Invest AS, who have fully underwritten the issue. The underwriters will receive an underwriting fee of 2 percent of the amount underwritten.

Further information about the rights issue and other conditions that must be considered when participating in the rights issue, will be included in the notice of the general meeting. The information will also be available in a prospectus prepared in connection with the rights issue, that will be available, at the latest, at the start of the subscription period. The prospectus will include the subscription material for the offer and will be available on NHST’s web site, www.nhst.no.