Thyssenkrupp to Raise Capital by 10%
September 25 2017 - 1:59PM
Dow Jones News
By Sarah Sloat
German industrial company Thyssenkrupp AG (TKA.XE) said Monday
it would increase its share capital by 10%, a move that could raise
as much as EUR1.4 billion (about $1.67 billion) in proceeds.
Thyssenkrupp plans to issue 56.6 million new shares in the
increase, with the placement price and proceeds to be announced
after an accelerated bookbuilding. Based on Monday's closing price
of EUR24.70 per share, the capital increase would raise about
EUR1.4 billion.
The decision follows recent strategic decisions, including the
sale of the company's Brazilian steel mill, completed earlier this
month, Thyssenkrupp said. Last week, the company also announced
plans to merge its European steel operations with those of Tata
Steel Ltd. (500470.BY), a move aimed at improving the company's
balance sheet ratios.
"The capital increase now announced provides the group with the
financial leeway to support organic growth in its industrial goods
businesses in the focus areas of urbanization, mobility and
services while driving forward necessary restructuring initiatives
at a faster rate," Thyssenkrupp said.
Chief Executive Heinrich Hiesinger said the Tata deal gives the
German company more strategic clarity, but said it would take time
for the positive effects to feed through to the balance sheet.
"We will use that time to strengthen our industrial goods
businesses right away," he said.
The bookbuilding starts Monday, Thyssenkrupp said.
Write to Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
September 25, 2017 13:44 ET (17:44 GMT)
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