Schaeffler €1.24 billion capital increase

Overview:

• Schaeffler sold €1.24 billion worth of shares in the business through a capital increase as it raised funds to reduce its debt.
• The family-owed German automotive parts and ball-bearing manufacturer traded 94.4 million non-voting shares to institutional investors at €13.10 per share. 
• Schaeffler launched its IPO in Frankfurt in 2015, raising around €938 million. 
• Following the capital increase, 24.9% of the company is trading freely. 
• Both transactions form part of a strategy to cut the businesses liabilities, which stood at roughly €4.89 billion at the end of 2015. 
• In 2009, heavily in debt following the take over of Continental, Schaeffler began a €12 billion debt restructuring; taking the company public was one of the final stages of this process.
• Bank of America Merrill Lynch, Citigroup, Deutsche Bank and HSBC Trinkaus & Burkhardt were underwriters on the block trade. 

Ben Naylor - Regional Editor