Trelleborg announces SEK 2.2 billion rights issue
ERJ staff report (RD)
Trelleborg, Sweden - Trelleborg AB, a global industrial group and rubber seal manufacturer, has announced it is attempting to raise SEK 2.2 billion (Euro 190 million) in a guaranteed rights issue of class A- and B-shares, subject to approval by the Annual General Meeting on 23 April 2009, the company said 23 March.
“The additional capital will provide Trelleborg with a good buffer in the current difficult market. The stronger capital base will ensure that the Group can deliver on its capital structure target and maintain a financial and commercial flexibility,†says Anders Narvinger, chairman of the board of directors of Trelleborg.
Trelleborg has suffered continued weak demand in early 2009, and estimates sales are down by around 20 percent compared to early 2008. The Company estimates that the operating profit of the Group for the first quarter of 2009, excluding items affecting comparability, will be slightly negative due to a continued significant decline in volumes within the automotive and industrial capital goods segments as well as costs related to capacity alignments within all business areas.
The company said it has a financial target of maintaining a net debt to equity ratio of 75-125 percent. With current market conditions, the board believes a strengthening of the capital base will ensure that the net debt ratio is kept within the target range, Lanxess added.
Holders of class A- and B-shares will have preferential rights to subscribe for new shares of the same series in proportion to their existing holdings (primary subscription rights), the company said, adding that several of the company's largest shareholders and a group of institutional shareholders support the rights issue.
The record date at the Swedish Securities Register Center, Euroclear Sweden AB, for participation in the rights issue is April 28, 2009.
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Press release from Trelleborg AB
This article is only available to subscribers - subscribe today
Subscribe for unlimited access. A subscription to European Rubber Journal includes:
- Every issue of European Rubber Journal (6 issues) including Special Reports & Maps.
- Unlimited access to ERJ articles online
- Daily email newsletter – the latest news direct to your inbox
- Access to the ERJ online archive