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ThyssenKrupp to raise capital by 10% ahead of Tata Steel deal

Thyssenkrupp plans to issue 56,593,794 new no-par-value bearer shares

Reuters  |  Berlin 

Heinrich Hiesinger, CEO of ThyssenKrupp AG. Photo: Reuters
Heinrich Hiesinger, CEO of ThyssenKrupp AG. Photo: Reuters

Germany’s will increase its capital by 10 per cent in a sale of new shares to bolster its balance sheet ahead of a planned deal with India's  

Last week, the two firms agreed to combine their operations in a move to create the continent’s second-largest steel company with revenues of about 15 billion euros ($18 billion). 

plans to issue 56,593,794 new no-par-value bearer shares to obtain “the financial leeway to support organic growth” in its industrial goods business, the firm said on Monday. 

At Monday's closing price of 24.7 euros, such a share sale would raise around 1.4 billion euros. With new joint venture not expected to start operations until late 2018, it would take “some time” for the positive effects of the transaction to filter through, Chief Executive Officer said. 

“We will use that time to strengthen our industrial goods businesses right away,” the Hiesinger said.

First Published: Mon, September 25 2017. 23:03 IST
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