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SGL cash call will see dilution of VW, Voith stakes
November 29, 2016 / 8:05 AM / 10 months ago

SGL cash call will see dilution of VW, Voith stakes

FRANKFURT, Nov 29 (Reuters) - A capital increase by one third at German carbon fibre and carbon materials specialist SGL will water down the stake held by carmaker Volkswagen , while rival BMW will maintain its position by purchasing new shares.

SGL, which has this year sold its struggling graphite electrodes business, said on Tuesday it would increase its equity capital by close to a third with a rights issue to cut debt.

Forty existing shares held in SGL entitle shareholders to subscribe for 13 new shares for 6 euros apiece.

BMW and one of the carmaker’s largest shareholders, Susanne Klatten, have committed to fully participating in the capital increase to maintain their shareholdings, while Volkswagen and engineering group Voith will not inject more cash, SGL said. (Reporting by Ludwig Burger; Editing by Maria Sheahan)

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