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Heidelberg Shares Re-Jig Sets Tone For Upturn

Edited by the Printingtalk editorial team May 31, 2004

"A market-conform decision at the right time", commented Heidelberger Druckmaschinen AG's CEO, Bernhard Schreier, regarding RWE's successful placement of its 50.02 percent interest in Heidelberg.

"A market-conform decision at the right time.

A larger free float has always been our target," was the comment from Heidelberg cheif exeuctive officer, Bernhard Schreier, referring to its largest shareholder's successful placement of its 50.02% interest in Heidelberg.

In a two-day process, RWE AG placed its 50.02% interest, through an accelerated book-building process with international institutional investors.

In particular the exchangeable bond was subject to strong international demand said Heidelberg.

"There was and still is a high demand for our share, which we can now satisfy.

The new, internationally extended shareholder base fits our global line-up," said Dr Herbert Meyer, chief financial officer of the company.

RWE had been Heidelberg's major shareholder since 1940.

In two steps - 1997 and 2001 - 22% of Heidelberg was already placed in the capital market.

The remaining major shareholders of Heidelberg are Allianz (12%), Commerzbank (10%) and Munich Re (six per cent).

Heidelberg's free float now equals 57%.

The exchangeable bond will raise Heidelberg's free float to 72% by 2007 at the latest.

Until then, RWE will hold a 15% share of Heidelberg.

Heidelberg had announced its fundamental realignment at the end of 2003.

The implemented strategy will be continued as planned under the new shareholder structure.

Heidelberg's management board said it now sees the current fiscal year rather positively.

"With the distinctly improved cost structure, the revised portfolio and the improving economical situation in mind, we intend to return to profitability within the current fiscal year," sai Schreier.