Schaeffler places 4% Conti shares to reduce debt
Schaeffler Holding and Schaeffler AG have announced that the companies have placed roughly 4 per cent of Continental shares with a range of investors. According to a statement issued by Schaeffler group, net proceeds will be used to pay down debt as well as additional reduction of debt from excess cash flow. However, the company re-affirmed that Continental AG remains a long-term strategic shareholding.
On 16 September the company announced the placement of approximately eight million shares in Continental AG with a broad range of international investors in an “Accelerated Bookbuilt Offering”. As part of the transaction, Schaeffler AG and Schaeffler Verwaltungs GmbH, Schaeffler AG’s holding company, will each sell roughly two per cent of the outstanding share capital of Continental AG.
In light of the placement Schaeffler has undertaken not to sell any Continental shares for a market-standard period of 180 days. With a consolidated stake of approximately 46 per cent of the outstanding share capital, Schaeffler remains the largest shareholder in Continental AG.
Following the news of the share sale Continental AG’s stock price fell 3.8 per cent in early trading, according to Reuters, and then 4.1 per cent later on.