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6. December 2020KION Group AG has fully placed its capital increase. 95.8 percent of the subscription rights were exercised and 4.2 percent were sold through a bookbuilding process. This resulted in a gross issuance revenue of approximately 813 million euros. A total of 13,108,647 new shares were issued, amounting to about 11% of the current share capital.
(Frankfurt/Main) KION GROUP AG has successfully completed the capital increase announced on November 18, 2020. 95.8 percent of the subscription rights were exercised. “The strong placement of the new shares underscores the confidence of shareholders and the capital market in our corporate strategy KION 2027,” says Anke Groth, CFO of KION GROUP AG.
Another Significant Step
The capital increase leads to a gross revenue of approximately 813 million euros. This is another significant step in strengthening the financial power and flexibility of the group and preparing KION Group for growth in the post-COVID-19 pandemic era as part of its strategy “KION 2027.” The total of 13,108,647 new shares – about 11% of the previous share capital – were offered to the shareholders of KION GROUP AG from November 20 to December 3, 2020, in a subscription ratio of nine to one, subject to certain restrictions. The subscription price was 62.00 euros per new share. The anchor shareholder of KION GROUP AG, Weichai Power (Luxembourg) Holding S.à r.l., fully exercised its subscription rights. 551,207 shares for which no subscription rights were exercised were sold on December 4, 2020, through an accelerated bookbuilding process in accordance with applicable securities laws to qualified institutional investors. The proceeds from the capital increase are initially to be used entirely to reduce KION Group’s debt. Once the proceeds from the offering have been received, KION Group also expects to be able to terminate the syndicated liquidity line that was agreed upon in May of this year with its core banking group, with significant participation from the Kreditanstalt für Wiederaufbau (KfW).
Strengthening the Balance Sheets
“The successfully completed capital increase further strengthens our balance sheet. From this enhanced financial position, we aim to strategically advance our innovative business activities,” says Gordon Riske, CEO of KION GROUP AG. The capital increase is intended to support further steps within the framework of the long-term strategy “KION 2027,” such as expansion in China, the development of new products, a focus on software solutions, and investments to increase efficiency. The capital increase still requires registration in the commercial register to become effective. The management board will apply for the registration of the capital increase in the commercial register shortly. It is planned that the new shares will be admitted to trading around December 7, 2020, and will be included in the existing listing in the regulated market segment with further admission obligations (Prime Standard) at the Frankfurt Stock Exchange around December 8, 2020. The new shares will be fully entitled to dividends from January 1, 2020. Photo: © KION Group / Thomas Ott www.kiongroup.com
