TELESTE CORPORATION STOCK EXCHANGE RELEASE 30.3.1999 AT 08.00 1(3)
FINAL IPO OFFER PRICE OF EUR 8.2 PER OFFER SHARE. THE COMBINED
OFFERING WAS ALMOST NINE TIMES OVERSUBSCRIBED. SOME 10% OF THE SHARES
WERE ALLOCATED TO THE RETAIL OFFERING AND SOME 30% TO FINNISH
INSTITUTIONS. SOME 60% WAS ALLOCATED TO FOREIGN INSTITUTIONS.
The final IPO price per share in the Combined Offering of Teleste
Corporation is EUR 8.2 per Share. The initial offer price range was
EUR 6.8 - 8.2 per share. In the Combined Offering 9,000,000 existing
offer shares are sold by the Selling Shareholders and 65,000 new offer
shares are offered for subscription by the Finnish employees of
Teleste Corporation. The Shares offered for sale in the Combined
Offering represent 56.3 % of the votes and share capital in Teleste
Corporation. Subscriptions for some 79 million Shares were made by
over 5,700 investors
Over 140 employees, corresponding to some 40 % of the employees in
Teleste corporation in Finland, participated in the Employee Offering.
In the Employee offering subscriptions were made for 99,540 shares.
The subscription price in the Employee Offering was EUR 7.38 per
Share. As a result of the subscriptions in the Employee Offering the
Board of Directors of Teleste Corporation decided in a Board meeting
on 29.3.1999 to increase the share capital in Teleste Corporation by
issuing 65,000 new Shares with a nominal value of 0.40 per share
totalling EUR 26,000. The increase in share capital has been filed on
30.3.1999 and will be registered on or about 31.3.1999. After the
registration the paid in share capital of the company is EUR 6,426,000
divided between 16,065,000 shares.
The Selling shareholders made their final decision, to pursue the
Combined Offering, on the subscription price, and the number of new
shares to be issued in the Employee offering on 29.3.1999. In the same
meeting the allocation of the Shares sold by the Selling Shareholders
was decided. At the same time existing shareholders agreements were
After the Combined Offering, Sponsor Fund I Ky's ownership of the
combined share capital and associated votes decreases from 97.8 % to
Some 90% of the Shares offered for sale are offered to institutional
investors and some 10% to the general public in Finland. Of the
8,100,000 shares offered to institutional investors some 30 % is
offered to Finnish institutional investors and some 70 % to foreign
In the Institutional offering, demand exceeded approximately nine
times the 8,100,000 Shares offered for sale. Payment for Shares in the
Institutional Offering should be made no later than 6.4.1999. Shares
paid for will be transferred to investors share register accounts on
or about 6.4.1999.
As a result of excess demand the Retail subscription period was
prematurely ended on Friday, 19.3.1999, two days after the launch of
the Retail offering.
In the retail offering demand exceeded approximately three times the
900,000 Shares offered for sale. Subscriptions in the Retail Offering
were made by some 5,100 investors. In the retail offering all
subscriptions have been accepted up to 100 Shares. Subscriptions in
excess of 100 shares have been accepted with an average allocation
ratio of 15.8 % and by using generally accepted rounding principles.
In the Employee Offering all subscriptions have been accepted for up
to 500 Shares. Subscriptions in excess of 500 shares have been
accepted with an average allocation ratio of 38.6 % and by using
generally accepted rounding principles. Shares paid for will be
transferred to investors share register accounts on or about 6.4.1999.
Excess subscription payments will be returned to investors' bank
accounts on or about 6.4.1999.
Enskilda Securities acted as Lead Manager and Opstock and Credit
Lyonnais acted as Managers in the Combined Offering of Teleste
Sponsor Fund I Ky, which sold shares in the Combined Offering has
granted the Lead Manager an Over-allotment Option, exercisable within
30 days of the date (29.3.1999) of the Offering Circular, to purchase
up to 1,300,000 additional Shares.
Trading in Shares of Teleste Corporation will be conducted on the Pre-
list of the Helsinki Stock Exchange from 30.3.1999 to 31.3.1999 and is
expected to transfer to the main List of the Helsinki Stock Exchange
on 6.4.1999. A number of advantages are achieved with listing on the
Pre-list of the Helsinki Stock Exchange. Until now, shares have
usually been quoted on international trading systems during the period
between pricing and actual listing. The Pre-list gives investors an
opportunity for public trading in the share in Finland immediately
after pricing. Trading on the Pre-list is subject to trading rules
applied to it and any terms agreed upon by the investor and the
broker. On the Pre-list, all investors can place buy orders, as in
stock exchange trading in general. Sell orders on the Pre-list can be
placed by investors who have shares in their possession at the time of
the sale or by those who can transfer the shares on the clearing day,
as in stock exchange trading in general. The shares that are sold can
be shares bought either on the Stock Exchange or in the offering.
Settlement for shares in the continuous trading on the Pre-list is on
the first trading date (30.3.1999) longer than usually. Such trades
will be settled on 7.4.1999. After the first trading date the
settlement period returns to normal, e.g. trades will be settled
within three trading dates from the trade date.
DESCRIPTION OF TELESTE GROUP
Teleste, founded in 1954, is an international technology Group
specialising in broadband telecommunication and multimedia
environments for language learning. The Group conducts its business
through independent companies. The business of the Group is divided
into three separate divisions, Teleste Access Systems, Teleste
Educational and Teleste Home Networks.
Teleste Access Systems is Europe's leading technology developer and
systems and equipment supplier for broadband cable networks. The cable
networks are able to simultaneously transfer video, sound and data bi-
directionally. Teleste Access Systems is also a leading developer and
provider of signal transfer equipment for surveillance networks.
Teleste Educational is a leading developer and supplier of analogue
and digital language learning environments in the world.
Teleste Home Networks produces equipment for TV signal distribution
and control for home and business environments in the UK.
For further information:
Teleste Corporation, CEO Timo Toivila, tel +358 2 2605 866 or +358 400
CFO Antti Salminen, tel +358 2 2605 725 or +358
40 535 1216
Helsinki Stock Exchange