Grammer planning capital increase

German car interior components manufacturer Grammer has said it is planning to issue stock as part of a capital increase in order to shore up its finances as the global Covid-19 pandemic continues to affect business.

The firm said advanced talks are underway over a possible increase of its existing syndicated loan, suspending its dividend and issuing new shares.

Grammer noted that it is aiming to raise at least EUR 40.00 million through the capital increase, which it intends to carry out during the second half of this year.

The group added that it is in discussions with its syndicate banks over a third tranche of its syndicated loan, expected to total EUR 235.00 million and to be used to cover it during the disruption caused by the coronavirus outbreak.

In addition, Grammer’s executive board has decided to revoke the earlier dividend proposal of EUR 0.11 per share, which it published on 30th March, and to propose that no dividend is paid for fiscal 2019.

This recommendation was approved by the supervisory board.

Grammer is active in the development and manufacture of components and systems for car interiors, in addition to driver and passenger seats for offroad vehicles, trucks, buses and trains.

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The firm recorded revenue of EUR 2.04 billion in 2019, up from EUR 1.86 billion over the preceding 12 months, while earnings before interest, taxes, depreciation and amortisation for the year stood at EUR 101.00 million, compared to 2018’s EUR 116.00 million.

Since the start of 2020, there have been 286 deals worth a combined USD 13.67 billion targeting motor vehicle parts manufacturers announced worldwide, according to Zephyr, the M&A database published by Bureau van Dijk.

Over the same timeframe in 2019, 380 such deals with an aggregate value of USD 25.48 billion were signed off, while in the corresponding period of 2018, the figures stood at 408 and USD 15.42 billion, respectively.

© Zephus Ltd


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