NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. Schaeffler reduces debt by approx. €1.3 billion
2013-09-17 | HERZOGENAURACH
- Placement successfully completed; proceeds approx. €950 million
- Additional prepayment of €325 million of debt from excess cash flow
- Further crucial step to optimize capital structure
- Continental remains long term strategic shareholding
Schaeffler, the global automotive and industrial supplier, has successfully completed the placement of 3.9% of Continental AG shares. Proceeds amounted to approx. €950 million. Combined with a prepayment of €325 million from excess free cash flow, the company thereby reduces its indebtedness by approx. €1.275 billion. The receiving banks also include an affiliate of the bank placing the shares.
Schaeffler sold 7.8 million shares in Continental AG at a price of €122.50 per share to a broad range of international investors in an Accelerated Bookbuilt Offering. Together with the debt prepayment from excess cash flow, Schaeffler reduces its gross debt from currently approx. €10.3 billion to approx. €9.0 billion. In this context, Schaeffler AG reduces its gross debt from currently approx. €6.7 billion to approx. €5.8 billion and Schaeffler Holding decreases its gross debt from currently approx. €3.6 billion to approx. €3.2 billion.
Following the placement, Schaeffler’s participation in Continental AG amounts to 46.0%, whereby Schaeffler AG holds 34.2% and Schaeffler Holding holds 11.8% of the outstanding share capital. Schaeffler remains the largest shareholder in Continental AG and thus confirms its long term strategic participation in the company.
Maria-Elisabeth Schaeffler and Georg F. W. Schaeffler, shareholders of Schaeffler Group, said, “The further reduction of debt is an important step for the continuous successful development of our company. We will maintain our shareholding in Continental as it is of long term and strategic importance to us.”
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Publisher: Schaeffler AG
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