PORR AG to Offer Up to 1.7 Million Treasury Shares through Accelerated Private Placement

Strategic Insights -

Frankfurt-based PORR AG has announced its intention to offer up to 1,703,674 treasury shares, which accounts for approximately 4.33% of its share capital, through an accelerated private placement to institutional investors. The move aims to strengthen the company's capital structure and invest in increased demand from infrastructure programs in Germany, Poland, and the CEE countries. This comes after the annual general meeting on May 27, 2021, excluded the shareholders' pro rata purchase right, allowing the company to bypass this requirement.

Key Takeaways:

  • PORR AG plans to offer up to 1,703,674 treasury shares through an accelerated private placement to institutional investors, accounting for around 4.33% of its share capital.
  • The company aims to use the proceeds from the placement to strengthen its capital structure and invest in infrastructure programs in Germany, Poland, and the CEE countries.
  • The shareholders' pro rata purchase right was excluded by resolution of the annual general meeting on May 27, 2021, allowing the company to sell treasury shares without this restriction.
  • PORR's free float will increase from 42.9% to approximately 47.3% assuming all treasury shares are sold.
  • The company will be subject to a 180-day lock-up following the private placement, with customary exceptions.
  • The accelerated bookbuilding procedure will be initiated immediately, and the final number of treasury shares and price per share will be determined by the management board and published on the Company's website after completion of the bookbuilding procedure.

Statistics:

  • Up to 1,703,674 treasury shares will be offered through the accelerated private placement.
  • The shares account for around 4.33% of PORR's share capital.
  • Proceeds from the placement will be used for capital structure strengthening and infrastructure investments.
  • PORR's free float is expected to increase from 42.9% to 47.3%.
  • The company will be subject to a 180-day lock-up following the private placement.

Sources:

  • [Company Announcement: PORR AG, Frankfurt Stock Exchange (no date)]