Baltic maintenance, repair and overhaul (MRO) firm Magnetic MRO plans to raise up to €8.95 million ($10.1 million) to fund organic growth, through a capital increase that could see Chinese company Shenzhen Yongtai Trading Co. and Hong Kong-based Sapphire Investment Holding acquiring shareholdings of up to 13.44% and 1.6% respectively.
“Magnetic MRO has total 11 different business units. Some of them are more focused on profitability and others are more driven towards fast growth. A significant part of the above equity injection will be allocated into fuelling organic growth in our growing business units,” Magnetic MRO CEO Risto Mäeots said.
Magnetic MRO is currently fully owned by Hangxin Aviation Services Co. However, on June 6, Magnetic MRO detailed plans to issue up to 30,158 new shares, with a nominal value of €6.40 each, paving the way for two new shareholders.
“The shareholding of Hangxin Aviation Services Co. Limited, the existing sole shareholder, may decrease as a result of the issue of new shares from 100% to 84.96%,” Magnetic MRO said.
The company’s share capital currently stands at €1.09 million, but this would rise to €1.28 million following the new shares issue.
Magnetic MRO said Shenzhen Yongtai Trading Co. has been authorized to subscribe for up to 26,957 of the new shares, giving it a stake of up to 13.44% for €8 million.
Sapphire Investment Holding Limited has also been authorised to subscribe for up to 3,201 new shares, or up to 1.60% of the company, for €950,000.
“The investors may subscribe for the new shares within a one-year period in multiple tranches. The subscription of new shares by Shenzhen Yongtai Trading Co. Limited is subject to certain regulatory approvals of People’s Republic of China,” Magnetic MRO said.