GRENKE AG resolves on cash capital increase with an issue volume of up to EUR 200 million
- Net proceeds from the transaction will be used to finance further growth in GRENKE Groups core markets over the next years and to continue its successful internationalisation strategy
- Focussed expansion of current market shares and systematic further development of product portfolio
- In light of the envisaged strong growth, the capital increase is expected to support the very strong capital base and maintain the equity ratio in the long term above 16%
Baden-Baden, June 13, 2018
With the approval of the Supervisory Board, the Board of Directors of GRENKE AG (ISIN: DE000A161N30) today resolved on a capital increase against cash contribution with an issue volume of up to EUR 200 million under the exclusion of current shareholders’ subscription rights (this corresponds to approx. 4.3% of the Company’s share capital based on the Xetra closing price as of June 12, 2018). The Company's share capital shall be increased through the partial use of the Company's authorised capital that was resolved on by the Annual General Meeting on May 03, 2018. The Company will issue new no-par value registered shares with dividend entitlement for the ongoing 2018 fiscal year and bearing rights equal to those of the existing outstanding shares of the Company. The new shares will be offered exclusively to institutional investors in a private placement by way of an accelerated bookbuilding offering.
"In view of the extremely positive business development in the first months of the current fiscal year, we plan to use the net proceeds from the capital increase to strengthen our equity base. Our strong equity position is key for growth in our core markets over the next years and for the continuation of our successful internationalisation strategy. Moreover it enables the focussed expansion of our current market shares and a systematic further development of our product portfolio", explained Antje Leminsky, Chair of the Board of Directors of GRENKE AG. Sebastian Hirsch, member of the Board of Directors, added: "We have decided to carry out the capital increase in order to seize the continued dynamic and profitable growth opportunities. The capital increase ensures that our capital base will remain at a solid and sustainable level and allow us to continue focusing on an equity ratio in the long term above 16%."
The new shares shall be admitted to trading on the regulated market of the Frankfurt Stock Exchange without a prospectus with simultaneous admission to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard). The new shares will be included in the current listing as per June 20, 2018. GRENKE AG has agreed to a customary lock-up period of six months.
Founder and Deputy Chairman of the Supervisory Board, Wolfgang Grenke, supports the capital increase and, together with his family members, intends to participate in the capital increase by placing an order.
Deutsche Bank AG and HSBC Trinkaus & Burkhardt AG will be acting as joint global coordinators and joint bookrunners for the transaction.