Housing investment company Sato is planning to issue up to 200 million euros in shares in order to increase its equity ratio and gain more financing options. The move has been supported by the company’s largest shareholder, Balder Finland Otas AB.

Sato will announce an invitation to an extraordinary general meeting on Monday, where the board will be authorized to decide on the share issue. The company’s current shareholders have subscription rights to collect gross assets of up to 200 million euros. The proposal to the general meeting states that the number of shares to be issued under the authorization would be a maximum of 56,700,000 shares, equivalent to about one hundred percent of all the company’s shares.

The condition of the share issue is that the company’s shareholders grant the proposed authorization at the general meeting, which will be held on December 11. The offering is scheduled to be completed by the end of February 2024, dependent on market conditions.

At the end of September, Balder owned 56.3 percent of Sato’s shares, making them its largest shareholder. The second largest owner was Stichting Depositary APG Strategic Real Estate Pool with a 22.6 percent holding, while mutual employment pension insurance company Elo owned 12.7 and the State Pension Fund held 4.9 percent of Sato’s shares