Aconsortium of four bank has taken an equity stake in Herrenknecht AG, which has planned an initial public offer (IPO) in an attempt to expand international business.
As a preparation for the planned IPO, the consortium of banks has increased the company’s capital by $4.4m to a total of $17.8m, giving it possession of 25% of the shares (plus one share) in Herrenknecht AG. Of the decision, Dr h.c. Lothar Späth, chairman of the Herrenknecht Supervisory Board says:
"After intensive preparation, the conversion of the limited liability company Herrenknecht GmbH to a stock corporation and the participation of our new associates, the course is set for Herrenknecht AG’s initial public offer."
President and chief executive officer, Dr-Ing. h.c Martin Herrenknecht, explained: "Expanding the company’s global market presence and exploiting its innovative potential, these are the prime motives behind the IPO."
Before the IPO, an additional increase in share capital is planned. To achieve the widest shareholder structure possible, between 40-50% of the shares will be placed on the market.
