Mori Seiki set to increase Gildemeister stake: further increase to come
1 min read
Japanese machine tool builder Mori Seiki has increased its shareholding in German machine tool builder Gildemeister AG, as part of a two-stage process.
Gildemeister is to raise its share capital by about 10% through the issue of new shares that will be sold exclusively to Mori Seiki, Gildemeister said on Tuesday, 15 March, reports Reuters. The two companies already had a mutual 5% shareholding in each other and are working together at various levels, including the assembly of Mori Seiki machines in Gildemeister clothing – see here and here for latest details.
Mori Seiki is acquiring the shares at a 20% premium to the volume-weighted average share price of the previous 10 trading days, it was further reported, and the shares will have full dividend rights for 2010. Gildemeister said it expected to raise about €83 million from the capital increase.
A second capital increase from authorised capital is to follow quickly on the heels of the first, with Mori Seiki also participating in this.
"The second capital increase would be expected to amount to 20% of the share capital of the company at that time," Reuters quotes Gildemeister as saying. A price for those shares has yet to be set.
Proceeds from the two capital increases will be used to cut financial liabilities and strengthen its equity base.
