KTG Agrar successfully increases capital by ten percent
430,000 shares placed within a few hours
Hamburg, 29 August 2008 – The Management Board and the Supervisory Board of KTG Agrar AG [ISIN: DE000A0DN1J4] today decided to use part of the authorised capital in accordance with section 6 of the statutes and to increase the capital by 430,000 shares in an ex-rights transaction. The 430,000 bearer shares (ten percent of the share capital) were placed with institutional investors in an accelerated bookbuilding process by equinet AG. Based on an offering price of EUR 15 per share, the company’s gross proceeds amount to EUR 6,450,000. “We are pleased about the strong interest. Within only a few hours we were able to place all shares and see this as providing evidence of the great trust placed in our company and our growth strategy.”
The proceeds from the capital increase will be used by KTG Agrar, in addition to the capital from the IPO, to finance the company’s future dynamic growth in order to strengthen the position as one of Europe’s leading producers of agricultural commodities. Especially the farmland expansion in Germany and Lithuania shall be further pushed. At present, KTG Agrar manages some 21,500 hectares. “We are currently looking at very attractive growth opportunities. We want to use these consistent and thus aim to pass the 25,000 hectares mark in 2009,” said Siegfried Hofreiter, CEO of KTG Agrar.
Upon the entry of the capital increase in the Commercial Register, the share capital will rise from EUR 4,300,000 to EUR 4,730,000. The entry in the Commercial Register of the Hamburg District Court will immediately be arranged for. The new shares are fully entitled to dividend with effect from 1 January 2008. To allow the transaction to be effected, the shares were initially made available by one of the main shareholders in the form of a securities loan.