Capital News

In response to the increasingly strict demands of controllers and investors, Commerzbank closed off its increase in share capital on April 28 that it had sprung on the market the day before after accruing a gross revenue of 1.4 thousand million Euros. 113.850.693 new shares were placed at 12.10 Euros per share by means of a so-called accelerated bookbuilding process with institutional investors. Existing shareholders were left empty handed. This lowered German participation in the Soffin bank salvage fund from 187.3 to 15.6 percent. As placement proceeded, the bank’s quota of core capital rose from the 9.3 percent of the end of 2014 to a proforma 10.2 percent at the end of March, on the assumption, obviously, that the Basel III capital regulations are fully adhered to. At this juncture, and for the first time since 2008, the bank is genuionely preparing for a dividend payout.

Deutsche Wohnen’s decision to proceed with a massive increase in capital, and dig deep into its pocket to acquire a real estate portfolio was not particularly appreciated by its shareholders. The company is buying up some 6500 apartments, mostly in Berlin, and committing no less than 500 million Euros to pay for them. The transaction is expected to be financed by a capital measure. Deutsche Wohnen had already announced their target revenue of 907 million Euros gross against a cash contribution at 7:1 between old and new shares, generating up to 42.2 million new shares. Deutsche Wohnen is planning further purchases and aims at refinancing part of its indebtedness, a move that should reduce its level of indebtedness to less than 45% with an average interest rate of under 2%.

The acquisitions coffers of hi-tech machine tool manufacturer Manz have increased by approximately 41.9 million Euros. A share placement that was launched on April 28 and closed off the following day, April 29, involved 492,895 shares at a placement price of 85 Euros, 3.4% lower than the April 28 closing price. Investors are anything but happy with this turn of events. In the single move of placing 100,000 shares, principal shareholder and CEO Dieter Manz transformed his entire portfolio into liquidity. The shares of the former solar panel producer have a stock-market floor value of no less than 8.8 million Euros which he aims to use to fund growth. This current year, Manz’s target turnover is from 320 to 340 million Euros, and, it goes without saying, to make a profit.

Siltronic: ready, get set, go

Siltronic AG, part of Wacker Chemie AG, is preparing for stock exchange flotation envisaged before the 2015 summer break, aiming for Prime Standard listing on the Frankfurt Bourse. Consequently the manufacturer of pure silicon wafers for the semiconductor industry and the Wacker group are preparing to place new shares deriving from an increase in capital, and sell off stock from Wacker’s portfolio. Siltronic has pointed out that the offer is open to private and institutional investors in Germany and Luxembourg. On the international stage, the company intends placing the shares privately. The net revenue will be used to reduce indebtedness. No further details have been made public regarding the transaction. Siltronic is present on the international market with a staff of some 4000.

Windeln.de: the stock market is in the air

Windeln.de, online trader in products for new-borns and infants in German speaking markets, turned to the stock-market in May, and accrued a revenue of some 211 million Euros. Established five years ago, the start-up placed more than 11 million shares at the issue price of 18.50 Euros per share in the Prime Standard listings on the Frankfurt Stock Exchange. 5.4 million Euros worth of shares derive from an increase in capital, and 4.5 million Euros by participation on the part of shareholders willing to assign. Approximately 1.5 million shares were placed by an additional distribution. The revenue of 127 million Euros deriving from the issue will go directly into the company coffers and the remainder will go to the company founders and prior investors. According to the company, the principal shareholders have stood their ground.

The company was swift in making a name for itself on the international stage, indeed almost half of its turnover is generated in China. Windeln.de recently bought over its competitor in the Czech Republic Feedo giving momentum to its expansion in Eastern Europe. Stock market listing is intended to underpin company growth. Lately, company turnover was 101 million Euros and losses amounted to 9.8 million Euros, almost 2.5 million Euros less than 2013.

PNE Wind: fresh money for restructuring

Wind farm planner PNE Wind AG successfully launched a capital increase of 9.5 million Euros in mid May. The initiative was devised as a means of underpinning company resources with an eye to company restructuring. The Prime Standard listed company issued 4.6 million new shares at 2.07 Euros per share and were traded within a private placement. According to PNE, the revenue will be used to finance the broadening of a business model that concentrates projects into a subsidiary company. The quotas of this so-called yieldco are expected to be sold to investors, hopefully by the end of 2016 when the subsidiary company begins to generate a profit.  

Organization at the speed of light

It’s been 7 years since Zalando’s brainchild of merchandising footwear on line became reality with the early sales of your basic flip-flops. Now, the day after the company’s first AGM after IPO, the company finds itself MDax-listed. There was a excitement in the air, fuelled also by the variety of those present, from dreadlocks to a former CEO of a DAX-listed iron and steel concern . The company’s success seems to stem from keeping new ideas funky.