HQ shares spike after approval of fund sale
TT/The Local · 14 Jun 2010, 15:35
Published: 14 Jun 2010 15:35 GMT+02:00
- HQ rescue plan triggers new share collapse (08 Jun 10)
HQ shares rose sharply after the news. Öresund will finance the purchase with its own resources and hopes the deal can proceed without loans, the company said in a statement.
Öresund has also issued an option to HQ, through which it will make it possible to buy back HQ under similar conditions.
HQ needs money to cover losses from speculative deals it has made. HQ shares have been weak since mid-April, when the company reported a lower profit for the first quarter.
However, the first real cold shower for shareholders came on May 26th, when the company was flagged for a "forced liquidation" of its trading operations and a new share issue of more than half a billion kronor ($64 million).
Last week, it became clear that HQ needed more money originally flagged, and immediately. Consequently, it has sold its subsidiary HQ Fonder to its principal owner Öresund, while the previous issue was scrapped in favour of an even larger issue of up to 1 billion kronor.
FI is closely following HQ's developments closely, but certain details from the review have not yet been revealed.
HQ shares rebounded in trading on Monday morning. The news at lunchtime of FI's clearance gave shares even more momentum. By 1:30pm, shares had risen by nearly 26 percent.