Skip to main content

UPDATE 1-Commerzbank sets terms for $3.3 bln capital hike

Commerzbank is offering shares at a deep discount in a 2.5 billion euro ($3.3 billion) capital increase aimed at repaying funds it owes to the German government and insurer Allianz.

 

Germany's second-biggest lender said on Tuesday it was offering 556 million new shares at a subscription price of 4.50 euros per share, a discount of 55 percent to Monday's closing price of 9.94 euros.

That is equivalent to a 38 percent discount on the share price when excluding the value of subscription rights, set at 2.65 euros per share, and in line with expectations.

Current shareholders will be entitled to receive 20 new shares for every 21 shares they now hold. The subscription period starts on Wednesday and runs until May 28.

Commerzbank shares were indicated to open 2.6 percent lower in pre-market trade on Tuesday.

As part of the transaction, German bank bailout fund Soffin will sell Commerzbank shares worth 625 million euros, reducing its stake to roughly 17 percent from 25 percent.

Soffin's shares will likely be sold at a price near the theoretical ex-rights price of 7.28 euros, and the placement may start later on Tuesday, a source familiar with the transaction said.

In a 2008 bail-out, the German government took a 25 percent stake in Commerzbank and also granted it billions of euros in a debt-equity hybrid dubbed a silent participation.

By repaying the silent participation held by the state and insurer Allianz, Commerzbank will save annual interest expenses of roughly 200 million euros.

Commerzbank is joining a slew of European banks tapping shareholders for fresh money, including Germany's bellwether Deutsche Bank, Russia's second-largest bank VTB as well as Greek and Spanish banks.

The banks are taking advantage of bullish equity markets as European shares trade at five-year highs, while bank shares have returned to around the two-year high they had reached in late January.

Deutsche Bank, Citi and HSBC are organising the issue.

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o