SATO's Board of Directors has decided on rights issue

9 May 2016

SATO Corporation, Company Announcement, 9th May 2016 at 1:15 pm

Based on the authorisation granted by the Annual General Meeting on 3 March 2016, the Board of Directors of SATO Corporation has decided on a rights issue against payment where a maximum of 5,084,184 new SATO Corporation shares, corresponding to around 9.06% of the total number of shares and votes in the company after the share issue, are offered to shareholders for subscription.

Saku Sipola, President and CEO:

- SATO invests strongly in rental housing in the Finnish growth centers. Two significant transactions took place in April, when we acquired in total nearly 2,300 apartments. We also have approximately 1,200 rental apartments under construction. With the decided share issue, we aim to maintain a solid capital structure and access to diversified funding. Our long term target is to continue on a strengthening equity ratio trend.

The main terms and conditions of the share issue are as follows:

  • The pre-emptive subscription right is held by each shareholder of SATO Corporation, registered in the company's shareholder register maintained by Euroclear Finland Oy on the record date 11 May 2016.
  • Each SATO Corporation's shareholder is entitled to subscribe for one (1) new share for every ten (10) shares owned by such shareholder (the "Primary Subscription Right").
  • Further, a shareholder who has subscribed for offer shares based on the Primary Subscription Right is entitled to subscribe for offer shares not subscribed for by virtue of the Primary Subscription Right (the "Secondary Subscription Right").
  • The subscription price is €19.53/share, totalling a maximum ofapproximately €99,294,114.
  • The subscription period begins at 8:30 on 17 May 2016 and ends at 16:00 on 10 June 2016 (Finnish time).
  • The announcement of the preliminary outcome of the share issue is estimated to take place on or about 17 June 2016.
  • If all shares offered in the rights offering have not been subscribed for by virtue of the Primary Subscription Right, the Board of the company will resolve to allocate such unsubscribed offer shares among the subscribers having made a secondary subscription.
  • If all offer shares have not been subscribed for on the basis of the Primary Subscription Right and the Secondary Subscription Right by shareholders, the Board may offer any unsubscribed shares for subscription to other parties. Should the Board decide to offer such unsubscribed shares, if any, the subscription period will end, at the latest, on 2 September 2016.
  • The new shares subscribed for on the basis of the Primary Subscription Right and the Secondary Subscription Right are expected to be registered with the Finnish Trade Register by 30 June 2016.
  • The shares issued in the offering will entitle their holders to dividends and to other shareholders' rights starting from the date of registration of the new shares.

No subscription rights will be recorded in the rights offering on the shareholders' book-entry-accounts when the subscription period commences. The Primary Subscription Right and the Secondary Subscription Right are not transferable.

For more information please contact:
Saku Sipola, President and CEO, phone +358 201 34 4001 or +358 40 551 5953
Riitta Salo, Corporate Councel, phone. +358 201 34 4040 or +358 400 423 170

SATO is one of Finland's leading rental housing providers. SATO's aim is to offer comprehensive alternatives in rental housing and an excellent customer experience. All told, SATO holds roughly 23,400 rental homes in Finland's largest growth centres and in St Petersburg.

In our operations, we promote sustainable development and initiative-taking, and work in open interaction with our stakeholders to create added value. *We operate profitably and with a long-term view.*We increase the value of our housing property through investments, divestments and repair work.

SATO Group's net sales in 2015 were €323.4 million, operating profit €196.5 million and profit before taxes €159.4 million. SATO's investment properties have a value of roughly €2.8 billion.

The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of SATO Corporation in any jurisdiction. In particular, this release does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. Any securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended, and may not be offered, exercised or sold in the United States absent registration or an applicable exemption from registration requirements.