Report: Schaeffler Needs up to 7 billlion Euros Share Capital

Schaeffler Group needs somewhere between 4 and 7 billion euros of new share capital, Germany’s Handelsblatt newspaper reported on Friday 12 December. According to a Perella Weinberg study presented to Continental’s supervisory board, Schaeffler has net debt of around 11 billion euros (six times annual EBITDA), Handelblatt reported. The newspaper’s banking sources said at the end of November no changes would be made to Schaeffler’s 16.1 billion euro syndicated loan before 2009.

At the same time as Handelblatt published its story, Wall Street Journal Europe reported that Continental is in talks to restructure the multi billion euro loans it arranged for the purchase of Siemens VDO Automotive. However, Reuters reported that Continental is not trying to restructure these “at this stage.” Quoting a source familiar with the matter, the newswire said it may have to do so next year if Schaeffler increases its stake to a majority shareholding or if the economic environment worsens dramatically.