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VIPsight

Corporate Governance – portrayed in the individual cultural and legal framework, from the standpoint of equity capital.

VIPsight is a dynamic photo archive, sorted by nations and dates, by and for those interested in CG from all over the world.

VIPsight offers, every month:
transparent and independent current information / comments / facts and figures on corporate governance locally and internationally,

  • written by local CG experts,
  • selected and structured by the Club of Florence,
  • financed by its initiator VIP and other sponsors with a background of “Equity and Advisory” interests.
     

VIPsight International


Article Index

 

 

Capital News


Volkswagen investors responded to the proposed buy-over of Scania and the news that broke right then of an increase in VW share capital – provided the Scania deal went through – by heavy selling. The increase in the Wolfsburg-based auto manufacturer’s share capital to be put up as partial funding to purchase the remaining Scania shares disappointed the market. Indeed Volkswagen has sufficient liquidity of its own to purchase the whole Scania stock outright. Analysts deem that the offer of 7 thousand million Euros is excessive. Given the pitfalls that could affect the success of the transaction, there is still too little information on the increase of VW capital by issuing privilege shares for a volume of up to two thousand million Euros. The offer expires on April 25.


Ad hoc Notification Pursuant to § 15 of the German Securities Trading Act (WpHG)

Berlin, 19 March 2014 – Air Berlin PLC is currently in advanced discussions on options, which, if implemented, would have a substantial effect of the company. The company therefore postpones its annual press conference and the analysts & investors conference from 20 March 2014 to 27 March 2014.

Air Berlin PLC The Hour House 32 High Street Rickmansworth WD3 1ER Hertford-shire Great Britain ISIN GB00B128C026, WKN AB1000, (Share) on the Frankfurt Stock Exchange (Regulated Market, Prime Standard), ISIN DE000A0NQ9H6 (Convertible Bonds 2007) Euro MTF Market on the Luxembourg Stock Exchange, ISIN DE000AB100A6 (Bond 2010), ISIN DE000AB100B4 (Bond April 2011) and ISIN DE000AB100C2 (Bond November 2011) each of the three bonds segment Bondm of the open market on the Stuttgart Stock Exchange and Main Securities Market on the Irish Stock Exchange, ISIN DE000A1HGM38 (Convertible Bonds 2013) Open Market Frankfurt Stock Exchange

 

 

Strennesse: some breathing space

Creditors of Strenesse AG, the fashion company caught up in a cash crunch, are backing off to give it some breathing space. They have agreed to extend the term of  a Strenesse small-to mid-size company bond to three years, up to 2017, and thus have headed off the threat of bankruptcy. The Bond volume is approximately 12 million Euros. Some 53 per cent of the bond capital was consulted on the validity extension and approximately 96 percent were in favour.

The fashion maison’s turnover dropped by 10 percent in the 2012/2013 period.  The current year’s figure shows a dramatic free-fall of a further 25 percent to approximately 44 million Euros which, in all likelihood, will bring the EBITDA into the red. This also means a deficit in equity capital; Finance Magazin calculates that large-scale losses and allowances will slash the quota of equity capital to – 14 percent.

In the view of auditors Ebner Stolz, Strenesse must bolster its equity capital by ten million Euros, which would give investors the majority of this family-run concern. Besides, third-party investment, extending the bond term, and hoping that other investors will turn up are, on their own, not enough. A thorough analysis of the company is needed to identify and eliminate its lame duck areas. In any case, Strenesse’s board of directors is hoping for a 62 million Euro turnover in 2016-17and an EBITDA in excess of seven million Euros.


NZWL: a needed cogwheel

Neue ZWL Zahnradwerk Leipzig (NZWL) has issued a corporate bond with a volume of 25 million Euros. The stock of this supplier to the automobile industry was oversubscribed many times over from day one, to the point that the subscription closure date had to be brought forward. Bond subscribers include small- to mid size company funds, asset managers and small investors in the bourse.

NZWL intends making use of the third-party capital accumulated to finance further company growth. Some 60 percent of net revenue should be channelled into directly funding Neue ZWL Zahnradwerk Leipzig International to expand the new production facility in Tianjin, China. 27 percent is earmarked to pay for production innovation, regional expansion and bolstering subsidiaries and other partly owned companies. The remaining 13 percent should find its way into debt restructuring and refinancing.


Kinghero: expulsion

Deutsche Börse pulled no punches in expelling Kinghero AG from Entry Standard. The German holding company of a Chinese textile manufacturer was in serious breach of its obligations regarding transparency for which it was fined last December. Being struck from the list means that with effect from March 20,  Kinghero shares can no longer be traded, on the Frankfurt exchange at least.

Confusion reigns in the Chinese company. In January, the German management accused Zhang Yu, former CEO of Kinghero China, of embezzlement.  Zhang Yu has vanished as has the revenue collected through IPO and transferred to China. The administrators are of the opinion that last year’s  admonition of Zhang Yu delayed finalizing the 2012 accounts and this, according to Finance Magazin Germany was why the auditors refused to certify them last year.