Dräger replaces variable acquisition component and strengthens equity
(Thomson Reuters ONE) -
Drägerwerk AG & Co. KGaA / Dräger replaces variable acquisition component and strengthens equity processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
* Option for the issue of preferred shares instead of cash payment
* Reduction of liabilities
* Strengthening equity
Lübeck - On August 30, Drägerwerk AG & Co. KGaA replaced the cash settled option
for the acquisition price of the 25 percent stake in the medical division by
issuing an equity settled option on 1.25 million preferred shares. As soon as
the option is exercised, Dräger will issue new preferred shares in lieu of a
cash payment. The option with a strike price of EUR 64.12 matures on April
30, 2015. Based on the current status quo, Dräger would generate proceeds of EUR
80.15 million by issuing 1.25 million new preferred shares on executing the
option in full.
Apart from the fixed component of the purchase price totaling EUR 243.5 million
(EUR 175 million in cash and a vendor note of EUR 68.5 million issued by
Siemens), Siemens and Dräger had originally agreed a variable purchase price
component, which is based on the price development of the preferred share and
capped at a maximum of EUR 50 million (cash settled option).
Due to the positive development of the Dräger preferred share compared to
December 31, 2009, the value of the option component of the purchase price has
increased. In the period January 1, 2010, until August 30, 2010, EUR 11.8
million were subsequently recognized as an expense in other financial result. In
the future, fluctuations in the value of the option will no longer be recognized
in profit and loss.
Equity ratio further strengthened
As the cash settled option is being replaced by an equity settled option, Dräger
is strengthening the company's equity base by EUR 26.5 million. In the course of
replacing the cash settled option with an equity settled option, which does not
limit the gains derived during exercising the option, Siemens waived the
repayment of EUR 8.5 million from the vendor note as agreed given the higher
current value of this option alternative. The option was recognized as a
liability of EUR 18.0 million on August 30, 2010. Liabilities have decreased by
a total of EUR 26.5 million in conjunction with the reduction of the vendor
note.
"Further strengthening our equity base, the advantages from buying back the
Siemens shares in the medical division and the successful turnaround are
excellent foundations for the company's sustained growth," highlighted Stefan
Dräger, Chairman of the Executive Board of Drägerwerk Verwaltungs AG.
Disclaimer
This publication serves information purposes and constitutes neither an offer to
sell nor a solicitation to buy any securities of Drägerwerk AG & Co. KGaA. The
new shares issued in connection with the capital increase have already been
placed.
This press release contains forward-looking statements regarding the future
development of the Dräger Group. These forward-looking statements are based on
the current expectations, presumptions, and forecasts of the Executive Board as
well as the information available to it to date and have been prepared to the
best of its knowledge and belief. No guarantee or liability for the occurrence
of the future developments and results specified can be assumed in respect of
such forward-looking statements. Rather, the future developments and results are
dependent on a number of factors. They entail risks and uncertainties beyond our
control and are based on assumptions which could prove to be incorrect.
Notwithstanding any legal requirements to adjust forecasts, we assume no
obligation to update the forward-looking statements contained in this report.
You will find all key financial dates on our website at www.draeger.com under
Investor Relations/Financial Calendar.
Contact
Corporate Communications:
Burkard Dillig
Tel. +49 451 882-2185
burkard.dillig(at)draeger.com
Investor Relations:
Vanina Herbst
Tel. +49 451 882-2685
vanina.herbst(at)draeger.com
Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23542 Lübeck, Germany
www.draeger.com
[HUG#1441775]
--- End of Message ---
Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55 Lübeck Germany
Listed: Freiverkehr in Börse Stuttgart,
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Press release (PDF) :
http://hugin.info/135701/R/1441775/386092.pdf
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Source: Drägerwerk AG & Co. KGaA via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 31.08.2010 - 18:46 Uhr
Sprache: Deutsch
News-ID 40803
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contact information:
Town:
Lübeck
Kategorie:
Business News
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"Dräger replaces variable acquisition component and strengthens equity"
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Drägerwerk AG & Co. KGaA (Nachricht senden)
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