Before making an investment decision please read the Rules of Metsäliitto Cooperative, the prospectus on Metsäliitto Cooperative and its additional shares and the terms and conditions for additional shares. The documents are available in Finnish and Swedish on the Finnish and Swedish versions of this page.
The goal is to pay higher interest on Metsä1 additional shares than on any other types of additional shares. However, Metsäliitto Cooperative’s Representative Council will separately decide and determine the interest on members’ capital and will do so annually based on a proposal from the Board of Directors.
The Metsä1 additional shares remain in force for 10 years, after which they are converted into Metsä2 additional shares unless their validity has been extended as a result of new wood sales. By doing wood trade with Metsä Group, the validity of your Metsä1 additional shares will be extended in proportion to the income from new sales.
Interest on members’ capital 2021
At the Annual General Meeting on 28 April 2022, the Representative Council of Metsäliitto Cooperative decided the interest to be paid on owner-members’ capital. Based on the results for 2021, Metsäliitto Cooperative paid interest of 6.0% on the owner-members’ participation shares (in 2020: 6.0). Interest of 5.0% (5.0) was paid on A additional shares, and 1.0% (1.0) on B additional shares.
The Representative Council also decided on a surplus reimbursement of EUR 0.15 per cubic metre of industrial roundwood received from a member over the past four concluded financial periods. The surplus reimbursement is primarily paid out in the form of Metsäliitto Cooperative’s Metsä1 additional shares, and partly in cash for the sum equivalent to each member’s withholding tax incurred.
The overall profit distribution totalled approximately EUR 80 million (66), with the surplus reimbursement based on wood trade accounting for roughly 10%. Interest on members’ capital and surplus reimbursement were paid on 12 May 2022.
The first decision on the interest on members’ capital for Metsä1 additional shares will be made in the spring of 2023.
You can convert your current A additional shares into Metsä1 additional shares
Metsäliitto Cooperative’s profit distribution model has been updated at the start of 2022, and the Metsä1 additional share replaces A additional shares for any new investments. The A and B additional shares will remain valid, but starting in 2022, new investments in them are no longer allowed. If you wish, you can convert your A additional shares into Metsä1 additional shares. The conversion does not require you to conduct wood trade.
In future, Metsä1 shares will also be the shares subject to Equity Bonus rights. If you wish, Equity Bonus rights earned in 2020 and 2021 can be used to subscribe for A additional shares according to their normal period of use, if you still have A additional shares with Equity Bonus rights. The period of use for Equity Bonuses earned in 2020 will conclude at the end of 2022. The period of use for Equity Bonuses earned in 2021 will conclude at the end of 2023.
The period of notice for Metsä1 and Metsä2 additional shares is six months from the end of the year of termination. As specified in the Rules of Metsäliitto Cooperative, the Board of Directors has the right to defer payment of the refund should this place the cooperative’s solvency or capital adequacy at risk. Additionally, section 16 of the Rules of Metsäliitto Cooperative is considered, determining the amount of participation shares and additional share refunds, and the rights of terminated shares.
Metsä1 and Metsä2 additional shares are also subject to a right of redemption reserved for Metsäliitto Cooperative in proportion to the holdings in the type of share to be redeemed. The redemption price is the par value of an additional share, which is EUR 1.00 (one euro).