DUESSELDORF (dpa-AFX) - Rheinmetall AG (RNMBF.PK), with approval of the supervisory board, announced that it has resolved to partially utilise its authorized capital to increase the share capital by up to approximately 10 percent against contributions in cash with the exclusion of preemptive rights of the existing shareholders.
The company's share capital will be increased from EUR 101.373.440,00 to up to EUR 111.510.656,00 by issuing up to 3.959.850 new ordinary bearer shares. The New shares will carry full dividend rights as of 1 January 2015. The new shares will be offered exclusively to institutional investors through private placement.
Rheinmetall plans to use net proceeds from the capital increase to finance its growth strategy in the defense and automotive sectors, to strengthen financial position and for general corporate purposes.
As part of the transaction, Rheinmetall has agreed to a 180 day lock-up period with respect to any transaction related to its shares, subject to customary exceptions.
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