Thyssenkrupp : decides 10 percent capital increase

With the approval of the Supervisory Board Executive Committee, the Executive Board of thyssenkrupp AG today resolved to increase the company's capital stock by 10 percent. This involves the issue of 56,593,794 new no-par-value bearer shares with shareholders' subscription rights excluded.

The move follows major strategic decisions over the last few months. The sale of the Brazilian steel mill CSA was completed on September 7. On September 20, the company signed a memorandum of understanding with Tata Steel Europe. The joint venture combining the two companies' European steel activities could start operations in late 2018. When the joint venture comes into effect, there will be a significant improvement in key balance sheet ratios, most notably in the equity ratio and in gearing (the ratio of net financial debt to equity).

Heinrich Hiesinger, CEO of thyssenkrupp AG: 'With the memorandum of understanding on the joint venture with Tata, we have provided strategic clarity. But it will take some time for the positive effects of the transaction to feed through to our balance sheet. We will use that time to strengthen our industrial goods businesses right away.'

The capital increase now announced provides the group with the financial leeway to support organic growth in its industrial goods businesses in the focus areas of urbanization, mobility and services while driving forward necessary restructuring initiatives at a faster rate.

The share issue starts today in an accelerated bookbuilding procedure, in which selected banks offer the new shares, without a prospectus, to German and international institutional investors. BNP PARIBAS, Commerzbank Aktiengesellschaft and J.P. Morgan Securities plc have been mandated to execute the transaction. The issue price and issue proceeds will be announced once the bookbuilding process is completed.

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