SRV Group Plc's Board of Directors resolved on a rights issue and publishes the terms and conditions of the rights issue

SRV GROUP PLC      INSIDE INFORMATION       22 MAY 2020      AT 12.30 EET

SRV Group Plc's Board of Directors resolved on a rights issue and publishes the terms and conditions of the rights issue

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

SRV Group Plc ("SRV") announced on 6 February 2020 that it is planning a directed share issue and a rights issue to strengthen its balance sheet. On 15 May 2020 SRV announced the completion of the directed share issue and its results.

Based on an authorisation granted by the Annual General Meeting on 26 March 2020, SRV's Board of Directors passed today, on 22 May 2020, a resolution on offering up to 131,049,371 new shares (the "Offer Shares") in a rights issue of approximately up to EUR 50 million for SRV's existing shareholders in accordance with the pre-emptive right of shareholders with a subscription price of EUR 0.38 per Offer Share (the "Offering"). The Offering is part of SRV's recovery programme announced on 31 October 2019, and the purpose of the Offering is to improve SRV's balance sheet, liquidity and financial position.

The Offering in brief

• SRV aims to raise gross proceeds of approximately up to EUR 50 million by offering up to 131,049,371 Offer Shares for subscription in the Offering.
• The existing shareholders of SRV have a pre-emptive right to subscribe for Offer Shares (the "Subscription Right") issued in the Offering in proportion to their existing shareholdings in SRV.
• A shareholder of SRV that is on the record date of 26 May 2020 recorded on SRV's shareholder register maintained by Euroclear Finland Oy will for each share held in SRV on the record date, receive one Subscription Right. The Subscription Rights will be recorded on shareholders' book-entry accounts on 27 May 2020. The first trading date without Subscription Rights is 25 May 2020.
• Each holder of Subscription Rights shall with each Subscription Right have the right to subscribe for one Offer Share at the Subscription Price (as defined below).
• The subscription price for each Offer Share is EUR 0.38 ("Subscription Price").
• The subscription period for the Offer Shares will commence on 29 May 2020 at 9:30 am Finnish time and end on 12 June 2020 at 4:30 pm Finnish time (the "Subscription Period").
• The Subscription Rights are freely transferrable and trading in the Subscription Rights on the official list of Nasdaq Helsinki Ltd ("Nasdaq Helsinki") is expected to take place between 29 May 2020 and 8 June 2020.
• SRV will publish a prospectus approved by the Finnish Financial Supervisory Authority on or about 28 May 2020.
• SRV has received commitments for an aggregate amount of EUR 40 million from Ilmarinen Mutual Pension Insurance Company, Pohjola Insurance Ltd, OP Life Assurance Company Ltd, Varma Mutual Pension Insurance Company, Tiiviste-Group Oy and Pontos Ltd to subscribe for new Offer Shares in the Offering (the "Subscription Commitments").
• Danske Bank A/S, Finland Branch, is acting as the sole global coordinator of the Offering (the "Sole Global Coordinator").
• The terms and conditions of the Offering are attached to this release.

General

Based on the authorisation granted by the Annual General Meeting, SRV's Board of Directors on 22 May 2020 passed a resolution on a share issue in which SRV will issue in accordance with the pre-emptive right of shareholders up to 131,049,371 Offer Shares. In the Offering, SRV is seeking gross proceeds of approximately up to EUR 50 million. The number of shares in SRV may as a result of the Offering increase from the 131,967,970 existing shares to up to 263,017,341 shares. Assuming that the Offering will be fully subscribed, the Offer Shares will correspond to approximately 49.8 per cent of all the shares following the completion of the Offering.

The Offer Shares are offered for subscription by SRV's shareholders in the same proportion as they hold shares in SRV on the record date of the Offering of 26 May 2020. Each holder of SRV's shares that is on the record date recorded on SRV's shareholder register maintained by Euroclear Finland Oy will, unless otherwise stated in the terms and conditions of the Offering, for each share held on the record date, receive one Subscription Right. The Subscription Rights will be recorded on shareholders' book-entry accounts in the book-entry system maintained by Euroclear Finland Oy on 27 May 2020.

The Subscription Period for the Offer Shares will commence on 29 May 2020 at 9:30 am Finnish time and end on 12 June 2020 at 4:30 pm Finnish time. SRV's Board of Directors shall have the right not to approve subscriptions received after the end of the Subscription Period. SRV's Board of Directors is entitled to extend the Subscription Period.

The subscription price for each Offer Share is EUR 0.38. The Subscription Price represents a discount of approximately 39.5 per cent on the theoretical ex-rights price of SRV's share, based on the closing price, EUR 0.876, of SRV's share on the trading day of 20 May 2020, immediately preceding the decision on the Offering. The Subscription Price for Offer Shares will be recorded in the fund for invested unrestricted equity of SRV.

Each holder of Subscription Rights shall with each Subscription Right have the right to subscribe for one Offer Share at the Subscription Price ("Primary Subscription"). No fractional Offer Shares will be issued, and no Subscription Right may be used only in part.

The Subscription Rights will be tradeable on the official list of Nasdaq Helsinki between 29 May 2020 (provided that Nasdaq Helsinki approves SRV's listing application) and 8 June 2020 (unless the Subscription Period is extended). Unused Subscription Rights will lapse worthless and be removed from holders' book-entry accounts upon the end of the Subscription Period without any notice or compensation.

Where not all Offer Shares are subscribed for in the Primary Subscription, SRV's shareholders and other investors have a right to subscribe for the unsubscribed Offer Shares without Subscription Rights ("Secondary Subscription") at the Subscription Price. The Offer Shares subscribed for in the Secondary Subscription are allocated primarily to investors that have subscribed for the Offer Shares with Subscription Rights also in the Primary Subscription and secondarily to investors, who have given a subscription order to subscribe for Offer Shares only without Subscription Rights and lastly, if there then remain unsubscribed Offer Shares, in accordance with the terms and conditions of the Subscription Commitments to the parties whose Subscription Commitment includes an Underwriting Commitment (as defined below).

SRV's Board of Directors will on or about 17 June 2020 (unless the Subscription Period is extended) approve the Primary Subscriptions and the Secondary Subscriptions made in accordance with the terms and conditions of the Offering, and applicable law and regulations.

SRV will on or about 17 June 2020 (unless the Subscription Period is extended) announce the final results of the Offering and the aggregate number of Offer Shares subscribed for.

The Offer Shares subscribed on the basis of Subscription Rights will be recorded on investors' book-entry accounts as interim shares corresponding to the Offer Shares ("Interim Shares") after subscriptions having been made and paid for. The Interim Shares will be freely transferable, and trading in the Interim Shares on the official list of Nasdaq Helsinki as a separate share series is expected to commence on 15 June 2020, provided that Nasdaq Helsinki approves SRV's listing application. The Interim Shares will be combined with SRV's existing shares once the Offer Shares have been registered with the Finnish Trade Register upheld by the Finnish Patent and Registration Office. The combination will take place on or about 19 June 2020 (unless the Subscription Period is extended) provided that Nasdaq Helsinki approves SRV's listing application.

Offer Shares subscribed for without Subscription Rights will be recorded on the investors' book-entry accounts as shares on or about 19 June 2020 (unless the Subscription Period is extended). Trading in the Offer Shares will commence on Nasdaq Helsinki on or about 22 June 2020 (unless the Subscription Period is extended).

Subscription Commitments

SRV has received commitments from Ilmarinen Mutual Pension Insurance Company, Pohjola Insurance Ltd, OP Life Assurance Company Ltd, Varma Mutual Pension Insurance Company, Tiiviste-Group Oy as well as Pontos Ltd, to subscribe for Offer Shares in the Offering for an aggregate amount of EUR 40 million (i) with all Subscription Rights they receive and (ii) except for Varma Mutual Pension Insurance Company, by subscribing for any Offer Shares not subscribed for in the Offering (underwriting commitment). The shares held by the parties that have given Subscription Commitments represent 47.2 per cent of all the shares in SRV, and the Subscription Commitments represent 80.3 per cent of the Offer Shares. The parties that have given Subscription Commitments are entitled to an aggregate fee of approximately EUR 101 thousand on the basis of the given underwriting commitment.

Important dates

25 May 2020                       First trading date without Subscription Rights

26 May 2020                       Record date of the Offering

29 May 2020                       The Subscription Period for the Offering commences

29 May 2020                       Trading in the Subscription Rights commences on the official list of Nasdaq Helsinki

8 June 2020                        Trading in the Subscription Rights ends on the official list of Nasdaq Helsinki

12 June 2020                      The Subscription Period for the Offering ends and unused Subscription Rights lapse worthless (estimated)

15 June 2020                      Trading in the Interim Shares commences on the official list of Nasdaq Helsinki (estimated)

16 June 2020                       Announcement of the initial results of the Offering (estimated)

17 June 2020                       Announcement of the final results of the Offering (estimated)

18 June 2020                        Trading in the Interim Shares ends on the official list of Nasdaq Helsinki (estimated)

18 June 2020                        The Offer Shares offered in the Offering are registered in the Trade Register (estimated)

19 June 2020                        Interim Shares are converted into Offer Shares (estimated)

22 June 2020                        Trading in the Offer Shares commences on the official list of Nasdaq Helsinki (estimated)

SRV has drawn up a prospectus regarding the offering (the "Prospectus"), of which SRV expects will be approved by the Finnish Financial Supervisory Authority on or about 28 May 2020. Provided, that the Finnish Financial Supervisory approves the Prospectus, it will be available on SRV's website at www.srv.fi/sijoittajat/ on or about 28 May 2020 as well as at SRV's registered office at Tarvonsalmenkatu 15 FI-02600 Espoo, Finland and at the reception of Nasdaq Helsinki at Fabianinkatu 14 FI-0100 Helsinki, Finland, on or about 29 May 2020. In addition, the Prospectus will be available on the Sole Global Coordinator's website at www.danskebank.fi/srv-fi/ on or about 29 May 2020.

The unofficial English-language translation of the Prospectus will be available on SRV's website at www.srv.fi/en/investors/ and on the Sole Global Coordinators website at www.danskebank.fi/srv-en/ on or about 29 May 2020.

Danske Bank A/S, Finland Branch acts as the Sole Global Coordinator of the Offering. Krogerus Attorneys Ltd acts as legal counsel to SRV. Roschier, Attorneys Ltd. acts as legal counsel to the Sole Global Coordinator.

For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Ilkka Pitkänen, CFO, tel. +358 (0)40 667 0906, ilkka.pitkanen@srv.fi

Distribution:
Nasdaq Helsinki
Main media
www.srv.fi

You can also find us on the social media:
Facebook   LinkedIn   Twitter   Instagram

SRV in brief

SRV is a bold developer and innovator in the construction industry. We want to offer the best customer experience as a constructor of urban city centres, while also being the most attractive employer in the industry. Our genuine cooperation and enthusiasm for our work comes across in every encounter. Sustainability is reflected in all our activities.

Established in 1987, we are a publicly listed company since 2007 in Helsinki Nasdaq stock exchange that operates in selected growth centres in Finland and Russia. Our revenue in 2019 was EUR 1,061 million. Over 1,000 people work for us and we employ a network of almost 4,000 subcontractors in our projects.

SRV - Building for life

IMPORTANT NOTICE

This release is not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. SRV does not intend to register any part of the Offering of the subsequent rights issue in the United States or to conduct a public offering of securities in the United States.

The distribution of this release may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. The information contained herein is not for publication or distribution, directly or indirectly, in or into Australia, Canada, Japan or the United States. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This release is not directed to, and is not intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

In any EEA Member State, other than Finland, and in the United Kingdom, this release is only addressed to and is only directed at qualified investors in that Member State or in the United Kingdom within the meaning of Regulation (EU) 2017/1129 (the "Prospectus Regulation").

This release is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). Any securities mentioned herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this release or any of its contents.

This release does not constitute a prospectus as defined in the Prospectus Regulation and as such, does not constitute or form part of and should not be construed as, an offer to sell, or the solicitation or invitation of any offer to buy, acquire or subscribe for, any securities or an inducement to enter into investment activity.

No part of this release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this release has not been independently verified. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. SRV or any of its respective affiliates, advisors or representatives or any other person, shall have no liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this release or its contents or otherwise arising in connection with this release. Each person must rely on their own examination and analysis of SRV, its subsidiaries, its securities and the transactions, including the merits and risks involved.

The Sole Global Coordinator is acting exclusively for SRV and no one else in connection with the Offering. It will not regard any other person as its respective client in relation to the Offering. The Sole Global Coordinator will not be responsible to anyone other than SRV for providing the protections afforded to its respective clients nor for giving advice in relation to the Offering or any transaction or arrangement referred to herein.

This release includes "forward-looking statements." These statements may not be based on historical facts, but are statements about future expectations. When used in this release, the words "aims," "anticipates," "assumes," "believes," "could," "estimates," "expects," "intends," "may," "plans," "should," "will," "would" and similar expressions as they relate to SRV and the transactions identify certain of these forward-looking statements. Other forward-looking statements can be identified in the context in which the statements are made. These forward-looking statements are based on present plans, estimates, projections and expectations and are not guarantees of future performance. They are based on certain expectations, which, even though they seem to be reasonable at present, may turn out to be incorrect. Such forward-looking statements are based on assumptions and are subject to various risks and uncertainties. Readers should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of SRV to differ materially from those expressed or implied in the forward-looking statements. SRV or any of its affiliates, advisors or representatives or any other person undertakes no obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release.