Capital News
The Commerzbank is planning a 2.5 billion-euro capital increase, to repay the silent contributions from the Special Fund for Financial Market Stabilization (SoFFin) of about €1.6 billion and over €750 million from Allianz early. The capital increase will be decided by the general meeting of the bank, currently valued at 7.4 billion euros: it has been brought forward to 19 April 2013. SoFFin is placing a portion of its stake on the stock exchange without subscription rights through a bank syndicate, lowering the government share to 15 percent. Thereafter, these options will be exercised by converting the silent contributions. After the transaction, the SoFFin share is expected to fall from the current 25 per cent to below 20 per cent. In addition, a capital reduction by conversion of shares at a ten to one ratio is planned, it was announced on 13 March. Visually, the quote, diluted by various capital increases, will go up tenfold.
Mori Seiki wants to increase its participation in GILDEMEISTER from the current 20 per cent to 24.33 per cent of the share capital, or 24.9 per cent of the voting shares. In return, the tool manufacturer receives the right to increase its equity stake in the Japanese company to 10.1 per cent. Mori Seiki will thus in a first stage gather in investments in companies in the major markets of the U.S. and Japan, obtaining a total of up to about 5.4 per cent of the existing share capital from a capital increase against contributions in kind. In a second step, the cash capital increase with subscription rights for all shareholders will follow.
Financing structure in need of optimization
The German Mittelstand (Germany’s SMEs) has enjoyed global success and is an important part of the German economy. A study has now found, however, that the companies are in need of catching up in relation to financial planning: many SMEs do not engage in professional financial management. The equity ratio of Mittelstand companies has steadily increased since 2005, except for 2011. After internal financing, debt financing, especially from banks, is very strong, at 48 per cent of the companies surveyed. Meanwhile, financing alternatives such as mezzanine, equity, minority shareholders or the capital market are hardly used. For about 60 per cent, the bank is the most important financial partner. Often, however, integrated and streamlined financial planning and a review of the current financing mix would be beneficial. Only about one in five German SMEs get an external rating through agencies or banks. More than 80 per cent do not see a rating as an influencing factor in company finance. The bulk of funds goes into growth financing and refinancing.
ETF for SME loans launched
In March, the fund company BayernInvest for the first time set up an investment fund that focuses exclusively on German exchange-listed Mittelstand bonds and trades as an active ETF on the Stuttgart Stock Exchange. According to the provider, the fund is aimed at experienced investors who want to profit through a broadly diversified portfolio of attractive yields on German SME loans. In selecting securities the fund managers follow, besides the listing in specific trading segments, other established criteria including minimum size of issue, a minimum external rating and limitations on investments in each individual sector. All securities in the portfolio are denominated in euros.