April 23 - Having turned down a takeover bid from its largest shareholder Kistefos, troubled Swedish shipowner Rederi AB TransAtlantic (RABT) has resolved on terms for its upcoming share issue.

RABT's board of directors resolved on a new share issue for the purpose of financing arising costs associated with imminent restructuring measures, which include the closure of the TransPal line where the offices in Hull (UK) and Szczecin (Poland) are being sold, the renegotiation of the bareboat obligations and restructuring costs associated with downsizing the organisation.

RABT will sell almost 29.6 million shares at the price of SEK5 (USD0.76) per share in order to raise total proceeds of SEK147.8 million (USD22.5 million) before transaction costs.

Kistefos offered SEK5 (USD0.76) per share for the outstanding 38 percent of the company that it does not own, but RABT dismissed the takeover bid.

However, if the rights issue is not fully subscribed for, Kistefos will increase its share of the capital and votes in RABT, due to fulfilment of the subscription and guarantee undertaking.

The rights issue is subject to approval by an AGM, which is being held in Gothenburg today (April 23) at 16:00 Central European Time.

The subscription period for the share offering runs from 9 May up to and including 26 May, 2014, or a later date to be decided by the board of directors.