DGAP-Adhoc: SKW Stahl-Metallurgie Holding AG: Indian Somani Group submitting non-binding letter-of-intent to strengthen the equity of SKW Stahl-Metallurgie Holding AG; Conditions: Restructuring contributions by providers of capital


SKW Stahl-Metallurgie Holding AG  / Key word(s): Capital
Reorganisation/Financing 

28.06.2016 19:27

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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München (Germany), June 28, 2016. The Executive Board of SKW
Stahl-Metallurgie Holding AG, München (Germany), ISIN DE000SKWM021, informs
that the Indian Somani Group submitted a non-binding letter-of-intent to
become a shareholder in the Company in the context of a financial
restructuring. According to Somani Group's proposal, a transaction should
entail a significant reduction of the registered capital and a subsequent
capital increase against cash with subscription rights for the
shareholders. The letter-of-intent stipulates that the execution of the
capital increase against cash is guaranteed by the Somani Group
("backstop") under the condition that the Somani Group is to hold at least
51% of the shares of the Company after the transaction.
From the point of view of the Somani Group, the execution of a transaction
would furthermore necessitate that the key providers of debt capital to the
Company participate in the financial restructuring by own contributions.
Today, Supervisory Board and Executive Board of the Company were made aware
of the fact that the largest shareholder of the Company (Group First
Holding GmbH/MCGM GmbH) had offered to the Somani Group to commence talks
about a participation in a transaction.
The negotiations are in a very early stage, and it is not secured whether a
transaction with the Somani Group for the financial restructuring of the
Company is going to materialize. Supervisory Board and Executive Board of
the Company will diligently assess the transaction as well as alternatives
for a financial restructuring.


28.06.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap.de

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Language:     English
Company:      SKW Stahl-Metallurgie Holding AG
              Rathausplatz 11
              84579 Unterneukirchen
              Germany
Phone:        +49 (0)8634 62720-15
Fax:          +49 (0)8634 62720-16
E-mail:       info@skw-steel.com
Internet:     www.skw-steel.com
ISIN:         DE000SKWM021
WKN:          SKWM02
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
              Stuttgart
 
End of Announcement                             DGAP News-Service
 
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