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ThyssenKrupp to raise EUR907 million in capital increase following Alabama plant exit
Germany's ThyssenKrupp AG on Monday announced plans to sell 51.5 million new shares in a capital increase. The industrial conglomerate is reportedly seeking to shore up funds depleted by a downturn in the global steel market and an ill-advised foray into the Americas.
According to Reuters, ThyssenKrupp said on Friday that it had struck a deal to sell its US plant in Alabama to ArcelorMittal and Nippon Steel & Sumitomo Metal Corp. for USD1.55 billion.
Sources told Reuters that the shares would be priced at EUR17.05 to EUR17.635. This is a discount of 3.3% to ThyssenKrupp's closing price on Monday. If successful, the German multinational could raise up to EUR907 million (USD1.23 billion) in the share sale.
The new shares are being placed with institutional investors in an accelerated bookbuild led by investment banks Commerzbank and JP Morgan, the report said.
Krupp Foundation declined to say whether it would participate in the capital increase. It is ThyssenKrupp's largest shareholder with a 25.3% stake, Reuters said.
Meanwhile, Cevian Capital said it would not rule out taking part in the share sale. The Swedish private equity firm is reportedly looking to increase its stake from just over 5%, the report said.
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