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Thyssenkrupp raises 1.4 billion euros via share sale ahead of Tata deal

The two firms agreed last week to combine their European steel operations

Reuters  |  Berlin 

Thyssenkrupp,  Thyssenkrupp-Tata Steel merger, Europe
The logo of ThyssenKrupp is seen at the headquarters of the steel maker and multinational conglomerate in Essen, Germany. (Photo: Reuters)


AG raised almost 1.4 billion euros ($1.66 billion) from institutional investors on Monday in a to bolster its balance sheet ahead of a planned with India's .

The two firms agreed last week to combine their operations in a move to create the continent's second-largest steelmaker with revenues of about 15 billion euros.

issued 56,593,794 new no-par-value bearer shares to obtain "the financial leeway to support organic growth" in its industrial goods business, the Essen, Germany-based steelmaker said.

At a price of 24.3 euros, below Monday's closing price of 24.7 euros, the raised 1.38 billion euros, the company said.

With the new Thyssenkrupp-joint venture not expected to start operations until late 2018, it will take "some time" for the positive effects of the transaction to filter through, Chief Executive Officer Heinrich Hiesinger said.

"We will use that time to strengthen our industrial goods businesses right away," he said.

If approved, the new joint venture would create Europe's second-biggest steelmaker after ArcelorMittal , with combined sales of about 15 billion euros.

First Published: Tue, September 26 2017. 10:14 IST