DGAP-Adhoc: Drägerwerk AG & Co. KGaA: DRÄGERWERK AG & Co. KGaA solicits holders of participation certificates of series A, K and D to submit offers to sell and announces dividend proposal; adjustment of dividend policy

Drägerwerk AG & Co. KGaA  / Key word(s): Corporate Action/Dividend

15.02.2012 07:31

Dissemination 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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Ad hoc report in accordance with Sec. 15 of the German Securities Trading
Act

DRÄGERWERK AG & Co. KGaA solicits holders of participation certificates of
series A, K and D to submit offers to sell and announces dividend proposal;
adjustment of dividend policy

Drägerwerk AG & Co. KGaA solicits the holders of participation certificates
(Genussscheine) of Series A, K and D (Series A: ISIN DE0005550651, WKN
555065; Series K: ISIN DE0005550677, WKN 555067; Series D: ISIN
DE0005550719, WKN 555071) which are admitted to trading in the regulated
market (Regulierter Markt) on Frankfurt Stock Exchange, Düsseldorf Stock
Exchange, Hanseatic Stock Exchange, Munich Stock Exchange and
Baden-Württemberg Stock Exchange (Series A and K have also been included in
trading on the unofficial market (Freiverkehr) of Berlin Stock Exchange) to
submit offers to sell these participation certificates to Drägerwerk AG &
Co. KGaA at a price of 210.00 Euro. The offer period is expected to start
on February 20, 2012 (including) and to end on March 19, 2012, 12:00
midnight (Frankfurt am Main local time). If all participation certificates
were to be submitted, the volume of the solicitation would amount to 296.8
million Euro. Drägerwerk AG & Co. KGaA will finance the transaction volume
out of cash and, additionally, has available unused credit facilities.

With the transaction the Executive Board (Vorstand) of the general partner
(persönlich haftende Gesellschafterin) intends to simplify and optimize the
capital structure of Drägerwerk AG & Co. KGaA as participation certificates
have largely lost their function as an equity instrument. Splitting the
market capitalization of Drägerwerk AG & Co. KGaA between different
participation certificate series in addition to the existing classes of
shares is not efficient and conflicts with an optimal equity funding of
Drägerwerk AG & Co. KGaA by way of shares.

In order to finance the optimization of the capital structure the Executive
Board of the general partner is going to propose to the annual
shareholders' meeting on May 4, 2012 - together with the Supervisory Board
(Aufsichtsrat) - a reduced dividend of 0,19 Euro per preferred share
(Vorzugsaktie) and 0,13 Euro per common share (Stammaktie). Due to the
prevailing insecure economic outlook Drägerwerk AG & Co. KGaA aims at a
higher equity ratio of 40% on a consolidated basis in mid-term to widen its
strategic opportunities to act. Reaching an equity ratio of 40%, Drägerwerk
AG & Co. KGaA plans to pay out again approximately 30% of the Dräger
Group's net profit (less non-controlling interests in net profit). Until
then, the Executive Board of the general partner intends to pay out
approximately 15% of the Group's net profit (less non-controlling interests
in net profit). With these measures the executive board, together with the
supervisory board, aims at allowing shareholders a higher return on
investment in the long-term based on the future optimized capital
structure.

The solicitation gives the holders of participation certificates the
opportunity to offer the sale of their participation certificates to
Drägerwerk AG & Co. KGaA without being impacted by the reduced dividend for
2011 and the adjusted dividend policy. The price of 210.00 Euro amounts to
a premium of 27.6 % (Series A), 23.4 % (Series K) and 25.8 % (Series D)
above the three months weighted average price and tops the all time high
trading prices by 6.7 %, 7.1 % and 9.1 % respectively.

The solicitation will not be made to any U.S. Person or person in the
U.S.A. and will be subject to further restrictions.
 

Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23558 Lübeck, Germany
www.draeger.com

Investor Relations:
Vanina Hoffmann
Phone: +49 451 882-2685
vanina.hoffmann@draeger.com

Corporate Communications:
Melanie Kamann 
Phone: +49 451 882-3998
melanie.kamann@draeger.com


15.02.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Drägerwerk AG & Co. KGaA
              Moislinger Allee 53-55
              23542 Lübeck
              Germany
Phone:        +49 (0)451 882-0
Fax:          +49 (0)451 882-2080
E-mail:       info@draeger.com
Internet:     www.draeger.com
ISIN:         DE0005550602, DE 000 555 063 6, DE 000 555 065 1, DE 000 555
              067 7, DE 000 555 071 9
WKN:          555060, 555063 Vorzüge, 555065 Genussschein A, 555067
Genussschein K, 555071 Genussschein D 
Indices:      TecDAX
Listed:       Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
              Standard), Hamburg, Hannover, München; Freiverkehr in
              Stuttgart
 
End of Announcement                             DGAP News-Service
 
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