Rieter resolves capital increase for Barmag takeover

(CONNECT) The shareholders of Rieter Holding AG approved all of the proposals put forward by the Board of Directors at an Extraordinary General Meeting on September 18, as detailed in a press release issued by the globally active supplier of textile machinery. In specific terms, an ordinary capital reduction through a reduction in nominal value and a simultaneous capital increase in two tranches, as well as the reintroduction of the capital band, were approved at the meeting. Rieter intends to use the proceeds from the capital increase to finance the previously approved acquisition of the Barmag textile machinery business for synthetic fibers from Oerlikon for a purchase price of 713 million Swiss francs.

In the first tranche of the capital increase, a total of 16,809,075 registered shares with a nominal value of 1 centime each will be issued, as Rieter stated in a separate press release. The plans for the second tranche envisage the issuance of a further 14,576,270 registered shares with the same nominal value. Existing Rieter shareholders have the right to purchase 25 new shares for each registered share held. The offer price for shares in the first tranche is 3.43 Swiss francs per new share, while the offer price for new shares in the second tranche amounts to 5.31 Swiss francs. Shares not subscribed to through subscription rights will be offered to new investors.

The reintroduced capital band at Rieter comes to between 1,292,548.23 Swiss francs and 1,496,634.78 Swiss francs. The Board of Directors has been authorized to increase the share capital within these limits by issuing new registered shares with a par value of 1 centime or by increasing the par value of existing shares, or to reduce it by canceling registered shares or reducing the par value of existing shares. ce/hs