IKB Deutsche Industriebank AG / Capital Increase/Profit Warning
16.02.2008
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Restructuring package for IKB substantiated Revised annual financial
statements 2006/07 approved Forecast estimate revised
Restructuring package
The further restructuring package to support IKB, which was announced in an
ad-hoc release of IKB on 13 February 2008, has been substantiated following
extensive negotiations:
A cash capital increase with subscription rights of up to
1,486,765,992.96 (subscription ratio 1 to 6) will be submitted for
resolution to the Annual General Meeting of IKB AG on 27 March 2008. KfW
has confirmed to the German Federal Financial Supervisory Authority (BaFin)
that new shares arising from the capital increase will be subscribed so
that IKB will receive at least 1.250 billion (before costs) from the
capital increase.
The agenda for the Annual General Meeting on 27 March 2008 will be
published on 18 February 2008.
KfW also agreed with BaFin to strengthen IKB's regulatory core capital by
600 million by 19 February 2008. This will be implemented through another
payment in the capital reserve (according to § 272, section 2, number 4
German Commercial Code/HGB). The contractual details of this capital
infusion will be determined at short notice and may also include a
compensation with future profits ('Besserungsabrede'), which might
negatively affect future annual net profits.
As further part of the restructuring, IKB also plans to sell substantial
parts of its portfolio investments.
Revised annual financial statements 2006/07 approved
IKB's Supervisory Board this evening approved the audited revised
consolidated accounts for the Group and the audited revised accounts for
the AG for the financial year 2006/07. Due to the implemented changes, the
Group's profit for the year was reduced by 141.8 million to 37.9
million and the equity capital decreased by 206.2 million to 1,190.6
million. The balance sheet total for the Group increased by 11,485
million to 63,538 million, due to the consolidation of the Rhineland
Conduit. The annual net profit for the AG of 146.3 million before changes
is fully absorbed through the changes. The revised annual net profit
amounts to 0. As a consequence, no dividend will be distributed and the
retained earnings are reduced by 71.5 million.
Revised estimate for the full financial year 2007/08
The losses resulting from the new valuation of the portfolio investments,
that were announced on 13 February 2008, substantially affect IKB's profit
and loss account in the current financial year. The restructuring measures
are added to the equity capital and not booked as proceeds, so that there
is no compensating effect on the profit and loss account.
However, on the basis of the current market situation, IKB's Board of
Managing Directors expects a reverse (positive) valuation effect of
approximately 770 million. IKB has opted for a valuation at fair value
under IFRS for a large part of its liabilities. These liabilities have lost
heavily in market value due to the crisis and are therefore booked at that
lower market value on the balance sheet. Under IFRS, this valuation gain is
reflected in the profit and loss account for the group. As long as it is
not booked against permanent interest and capital losses of hybrid
liabilities, such gain will dissolve until the liabilities are reimbursed
and lead to a corresponding expense.
Overall, the Board of Managing Directors expects a net loss for the Group
in the region of approximately 550 million for the financial year
2007/08. The former estimate of a net loss of up to 700 million did
neither include the additional charges resulting from the new valuation of
the portfolio investments nor the above-mentioned contribution from the
fair value valuation of the liabilities side.
The current earnings estimate is still subject to major uncertainties as
the audit of the interim results as of 30 September 2007 has not been
completed yet. Higher losses might also result from a sale of parts of the
portfolio investments.
The Board of Managing Directors estimates that the net loss for the AG for
the current financial year will amount to approximately 750 million. This
loss reflects the increased losses resulting from the new valuation of the
portfolio investments, that are compensated in part by loss bookings from
participation rights ('Genussrechte') and silent participations ('Stille
Einlagen').
The Board of Managing Directors
Düsseldorf, 16 February 2008
Contact: Dr. Jörg Chittka, Tel. +49 (0)211 8221-4349, Michael Klein, Tel.
+49 (0) 211 8221 4920, Dr. Annette Littmann +49 (0) 211 8221 4745; Fax: +49
(0)211 8221-2511, Email: investor.relations@ikb.de
DGAP 16.02.2008
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Language: English
Issuer: IKB Deutsche Industriebank AG
Wilhelm-Bötzkes-Straße 1
40474 Düsseldorf
Deutschland
Phone: +49 (0)211 8221-4511
Fax: +49 (0)211 8221-2511
E-mail: investor.relations@ikb.de
Internet: www.ikb.de
ISIN: DE0008063306
WKN: 806330
Indices: MDAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf, Hamburg, München; Freiverkehr in Hannover,
Stuttgart
End of News DGAP News-Service
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DGAP-Adhoc: Restructuring package for IKB substantiated - Forecast estimate revised
| Source: EQS Group AG