Capital increase generates EUR 8.3 million for KTG Agrar’s expansion
- 516,000 shares successfully placed within a few hours
- Growth opportunities can be used even more decisively
Hamburg, 24 March 2010 – KTG Agrar AG (ISIN DE000A0DN1J4) today successfully completed an accelerated bookbuilding process for a ten percent increase of its share capital. The gross proceeds of this transaction will amount to EUR 8,256,00. “We are very satisfied with the strong interest in our company,” said Siegfried Hofreiter, KTG Agrar’s CEO. “Now we can act on growth opportunities even more decisively.”
The Hamburg-based company intends to invest the proceeds in continued dynamic growth. Apart from increasing its total farmland, the company plans to expand its biogas production capacity by a significant margin. The recent amendment of the German Renewable Energies Act offers a high degree of planning certainty in this respect; offtake of the energy generated is ensured on a fixed-price basis for the next twenty years. “Due to the synergies between farming operations and biogas production, KTG achieves an EBIT margin in excess of 20 percent in this segment”, says Thomas R. G. Berger, Member of KTG Agrar’s Management Board and responsible for the biogas segment.
According to the decision taken by the Managing Board and endorsed by the Supervisory Board, the share capital was increased by EUR 516,000 from EUR 5,160,000 to EUR 5,676,000 by issuing new shares against cash. The 516,000 new bearer shares have been placed with German and international institutional investors by DZ BANK AG. The placement price was at EUR 16 per share. The capital increase will raise the company’s free float to approx. 54 percent.
Says Siegfried Hofreiter: „With our business model we profit from the mega trends popoluation growth, rising energy demand and CO2 decrease.“ Thereof, KTG Agrar is optimistic to sustain the profitabel growth of the past years in the future.