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Schmolz + Bickenbach Plans Capital Increase

Steel News - Published on Tue, 12 Nov 2019

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Global leader in special long steel Schmolz + Bickenbach announced an addition to the planned ordinary share capital increase. The capital increase will be voted on at the Extraordinary General Meeting on December 2, 2019. The share capital is now proposed to be increased by at least CHF 325 million, with a concurrent reduction in nominal value. On October 23, 2019, SCHMOLZ + BICKENBACH announced its plans to implement a share capital increase with a concurrent reduction in nominal value. The capital increase at the time should have amounted to a minimum of CHF 189 million and a maximum of CHF 350 million. Continued discussions with lenders, major shareholders and banks led to the decision to adjust the minimum amount of the proposed share capital increase to CHF 325 million. The Board of Directors accordingly decided at its last meeting to propose to the EGM for approval a share capital increase totaling at least CHF 325 million.

BigPoint Holding AG, which is controlled by Martin Haefner, had, as already announced, committed itself to support the capital increase with CHF 325 million, subject to, among other conditions, the requirement that it holds at least 37.5% of Schmolz + Bickenbachs share capital after the capital increase. To ensure that Schmolz + Bickenbach receives proceeds of at least CHF325 million from the capital increase, the maximum amount of the capital increase proposed to the EGM is formally set at CHF 614.25 million. This upper limit is therefore merely a technical necessity in order to increase transaction certainty for SCHMOLZ + BICKENBACH.

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Posted By : Rabi Wangkhem on Tue, 12 Nov 2019
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