Suominen EGM Decides
Suominen Corporation's Extraordinary General Meeting Concludes, Announcing Key Decisions Made
Anonymous
Suominen Corporation's shareholders voted on June 8, 2026, to let the board issue up to 500 million new shares — a move that dwarfs the company's current 58.2 million shares outstanding. The meeting took place as a remote session with no physical venue, Suominen confirmed in a stock exchange release at 10:30 a.m. EEST.
The authorization clears the way for a EUR 28 million rights issue designed to rescue the Finnish nonwovens maker — a company that produces the fabric used in wet wipes and hygiene products — from a streak of poor results. Net sales fell 19% to EUR 95.6 million in Q1 2026, according to GlobeNewswire, and the company posted a negative EPS of -$0.31 over the past 12 months.
A Massive Share Issuance to Plug a Leaking Balance Sheet
The board can now issue up to 500 million new shares to raise roughly EUR 28 million in gross proceeds, according to MarketScreener. That capital will fund Suominen's "Full Potential Program," a three-year turnaround plan targeting a 10% EBITDA margin by 2028. Right now, comparable EBITDA sits at just EUR 2.2 million — down from EUR 4.1 million a year ago.
The rights issue is fully underwritten. Ahlstrom Capital B.V. and Etola Group Oy — the two anchor shareholders who together hold 49.02% of the company — have signed binding agreements to participate and cover any shortfall. CEO Charles Héaulmé called this moment "a turning point," adding that Suominen will "upgrade our manufacturing capabilities" and "exemplify a culture of accountability."
Regulator Clears Major Shareholders to Buy More Without a Buyout Trigger
A key legal hurdle was cleared three days before the meeting. On June 5, the Finnish Financial Supervisory Authority (FIN-FSA) granted Ahlstrom Capital and Etola Group a permanent exemption from mandatory tender offer rules, according to Yahoo Finance. Under normal rules, crossing the 30% ownership threshold forces a company to buy out all other shareholders. That would have made the capital raise far too expensive.
The FIN-FSA said minority shareholders are "adequately safeguarded" because they can buy into the rights issue on equal terms. This means small investors will not be forced out — but any who choose not to participate will see their ownership stake shrink sharply once 500 million new shares flood the market.
Two U.S. Plant Failures and Rising Oil Costs Pushed the Company Here
Suominen's problems are not new. In Q3 2025, two operational incidents at U.S. factories caused major production losses. Customers left to find other suppliers. At the same time, oil-based fibers — which make up 37% to 38% of the company's raw materials — got more expensive as energy markets stayed volatile.
The April 2026 Annual General Meeting had already signaled distress: shareholders voted to pay no dividend for 2025 to preserve cash. The company also negotiated a two-year extension on its credit facilities as part of the broader restructuring deal, according to Yahoo Finance. New CFO Kimmo Raunio joined June 1, just one week before the EGM, specifically to drive financial recovery.
Analysts Skeptical Despite CEO's Personal Vote of Confidence
Not everyone is convinced the plan will work. Inderes analyst Rauli Juva holds a "Reduce" rating on the stock, with a target price of EUR 1.00. He flagged "material cost headwinds" from oil price swings and said the EUR 28 million raise is essentially a rescue fund, not growth capital. The stock currently trades between roughly $1.05 and $1.22 on Nasdaq Helsinki.
CEO Héaulmé put his own money in. He bought 4,301 shares between June 1 and June 3, 2026 — just days before the EGM. The board's formal subscription period for the rights issue is expected to open in late Q2 or early Q3 2026. The next major financial update will be the Half-Year Report on August 7, 2026, according to MarketScreener.
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