Conti Completes Bookbuilding of New Shares

Continental reports that the following news is not intended for direct or indirect release, publication or distribution into the USA, Canada, Australia or Japan, so T&A invites subscribers outside of these regions to read further.

Continental AG has placed a total of 31 million new shares after successful completion of an accelerated bookbuilt offering (ABO) on January 11. Members of a bank syndicate led by Deutsche Bank AG, Goldman Sachs International and J.P. Morgan Securities Ltd. placed 6.45 million new shares within the framework of the ABO. The allocation of shares, Conti notes, is subject to the exercise of subscription rights by existing free float shareholders. In addition to 24.55 million new shares placed at a fixed subscription price of 35 euros per share, a price of 40 euros per share was achieved for the remaining 6.45 million shares in the ABO. The gross proceeds of the rights issue is therefore expected to amount to approximately 1.1 billion euros upon completion of the ABO and assuming that all of the free-float shareholders will exercise their subscription rights.

“We take the view that the exceptionally positive reaction of investors to our capital increase confirms Continental’s good prospects in the future on the basis of an improved financial and capital structure. At the same time, the trust that investors have shown in our company encourages us in our plans to optimise the repayment schedule for our financial indebtedness in the same structured manner as we have thus far,” said Dr. Elmar Degenhart, chairman of Continental’s Executive Board.

Due to the issue of 31 million shares, the company’s share capital was increased by €79,360,000.00, from €432,655,316.00 to €512,015,316.48.