MIFA: Start of subscription period for capital increase

(PresseBox) ( Sangerhausen, )
The subscription period for shareholders commences today as part of the planned capital increase of MIFA Mitteldeutsche Fahrradwerke AG. Until July 12, 2012, investors can acquire new shares in Germany's largest bicycles manufacturer by quantity (based on its own estimates) at a subscription price of EUR 7.00, and based on a 5:1 subscription ratio. It is planned to increase the company's share capital by up to EUR 1.6 million from currently EUR 8.0 million to EUR 9.6 million. The transaction is managed by Joh. Berenberg, Gossler & Co. KG ("Berenberg Bank") as Sole Global Coordinator and Sole Bookrunner. equinet Bank AG and Süddeutsche Aktienbank AG act as Selling Agents. From July 17, 2012 MIFA's entire share capital will be traded in the Prime Standard segment of the Frankfurt Stock Exchange. Thus, MIFA shares will be continuously listed at the liquid XETRA trading platform and supported through designated sponsoring. The subscription rights will be traded from June 29 until July 10 on the Open Market of the Frankfurt Stock Exchange as part of the subscription offer.

As part of its growth strategy MIFA aims to take a further turn towards the capital market. "We have already converted our accounting basis to IFRS, also, in order to make ourselves more accessible to international investors. By upgrading to the Prime Standard we are setting ourselves the highest transparency standards", says Management Board member Peter Wicht outlining MIFA's capital market strategy. "With the transaction and the switch to the Regulated Market, we also aim to gain access to foreign investors, and put MIFA's growth both in Germany and abroad on a robust basis."

"For example, we wish to grow through strategic acquisitions both in Germany and internationally. Here, I see opportunities that could be worthwhile for MIFA", notes Wicht. Furthermore, growth opportunities for MIFA could particularly arise in the business with high quality e-bikes and in additional business with major customers. Moreover, MIFA intends to more strongly position the premium GRACE brand as brand for young customers and intensify the approach in specialist wholesalers and retailers. Also, the high-margin sector e-commerce is to be expanded. For this, MIFA's online presence has already seen a fundamental face lifting. The website resembles MIFA's strong positioning within the range of German mid-cap companies. We use production methods from the automotive industry which enable consistent high quality even at high quantity production.

The company is expected to generate total gross proceeds of up to EUR 11.2 million from the capital increase. Part of the proceeds will be deployed to streamline logistics and to make production processes more efficient: "We believe that MIFA already distinguishes itself with a high production efficiency. We can increase this further if we think about how to become even better on a daily basis", says Wicht. Additionally, the funds are to be utilised to optimise working capital: "The bicycles business is highly seasonal: we build up large inventories and receivables positions in winter and spring in order to service our major orders during the bicycle season. These seasonal working capital fluctuations need to be financed - particularly in times of strong growth", notes Wicht.


The information contained herein serves information purposes and does not constitute any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for securities of MIFA Mitteldeutsche Fahrradwerke AG. The offer is being made solely by means of, and on the basis of, the published securities prospectus (including any amendments thereto, if any) submitted to the Federal Financial Supervisory Authority. An investment decision regarding the publicly offered securities of MIFA Mitteldeutsche Fahrradwerke AG should only be made on the basis of the securities prospectus.

The securities prospectus is available free of charge from the banking syndicate, Joh. Berenberg, Gossler & Co. KG, or on the MIFA Mitteldeutsche Fahrradwerke AG website.

This release does not constitute an offer of securities for sale into the United States. Securities may not be offered or sold in the United States absent registration or any exemption from registration under the US Securities Act of 1933, as amended (the "Securities Act"). The securities of MIFA Mitteldeutsche Fahrradwerke AG described herein have not been and will not be registered under the US Securities Act and are not being and will not be offered or sold in the United States of America.

This communication is directed only at (I) persons who are outside the United Kingdom or (II) investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000(Financial Promotion) Order 2005 (as amended) (the "Order") or (III) high net worth companies and other persons to whom it may lawfully be committed falling within article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Order (all such persons together being referred to as "Relevant Persons"). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.
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