02/25/2008
Schuler share strengthened for capital market
Conversion of preferred stock to common stock
The Board of Management and Supervisory Board of Schuler AG today resolved to propose to the Annual Shareholders' Meeting on April 10, 2008, the conversion of all 7 million preferred shares into common shares in the course of a capital increase. The listed preferred shares account for 40 percent of capital stock and represent the free float portion. Schuler-Beteiligungen GmbH holds the other 60 percent of capital stock, totaling 10.5 million common shares, which are also to be listed on the stock exchange.
The step will make the Schuler share far more attractive for investors, as standard conditions for all shares will create a much simpler and more transparent capital structure. In turn, this is expected to enhance the share’s liquidity on the capital market. At the same time, the conversion is aimed at widening the circle of shareholders, as many institutional and international investors in particular only invest in shares with voting rights.
Dr. Robert Schuler-Voith, Chairman of the Supervisory Board of Schuler AG and Managing Director of Schuler-Beteiligungen GmbH, states: “Following the takeover of Müller Weingarten, the right moment has arrived for Schuler to support an expected capital increase with the conversion of its preferred stock into common stock. This move was already proposed by me some time ago and is something our shareholders have repeatedly called for. Schuler AG will thus reposition itself with a firm basis on the capital market. This will also make it easier to successfully and efficiently utilize our existing growth potential as the global market leader in metalforming technology.” Juergen Tonn, CEO of Schuler AG, says: “The Board of Management of Schuler AG warmly welcomes the possibility to convert shares into common stock. A more attractive share will strengthen the company and extend the Board of Management’s leeway in the realization of our ambitious corporate objectives.”
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