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VIB Vermögen AG plans capital increase to finance further growth
- Capital increase from authorised capital equivalent to 20% of share capital
- Issue of 3,554,374 new shares at a price of € 8.00
- Gross issue proceeds of approximately € 28.4 million to extend real estate portfolio
VIB Vermögen AG, a company specialising in commercial real estate portfolio management, is planning a capital increase equivalent to 20% of its current share capital. The Management and Supervisory boards have passed a resolution to utilise the resolution of the Shareholders' General Meetings of July 26, 2007 and July 6, 2010, to issue a total of 3,554,374 new ordinary bearer shares against cash. The price for the new shares was fixed at € 8.00, which would generate gross issue proceeds of around € 28.4 million for the company given a complete placing. The new shares (ISIN DE000A1KRQN8, German Securities Identification Number (WKN) A1KRQN), each with a notional share in the share capital of € 1.00, are fully dividend-entitled for the current 2011 financial year. Existing shareholders will be granted indirect subscription rights in a 5:1 ratio as part of the non-public offering. There are no plans to organise subscription rights trading.
The two-week subscription period for the new shares will commence prospectively on May 17, 2011. Shares that have not been subscribed for will subsequently be offered to institutional and strategic investors for subscription as part of the capital increase. Once the capital increase has been successfully concluded, the share capital of VIB Vermögen AG will increase by a total of 20%, from € 17,771,870 to € 21,326,244.
The additional equity is to be deployed exclusively for the extension of the real estate portfolio. Along with new constructions on existing land areas in Grossmehring (€ 2.8 million) and Baunatal (€ 2.7 million), additional logistics and retail properties with a volume of at least € 50 million are to be acquired at several other locations in Bavaria. The new investments offer an average rental yield of around 8%, based on acquisition values, which will further enhance the profitability of VIB Vermögen AG, and additionally diversify its tenant structure.
The transaction was organized by Baader Bank AG as the Global Coordinator and Sole Bookunner and M.M. Warburg & CO as the Co-Lead Manager.
Ludwig Schlosser, CEO of VIB Vermögen AG, explains the objectives behind the capital increase: "We want to continue our growth course, and expand our leading position as a commercial real estate portfolio manager in Southern Germany. Having optimised and consolidated our existing portfolio last year, we now aim to take the next growth step and exploit market opportunities." Management Board colleague Peter Schropp underscores the strategic significance of the capital measure accordingly: "In its current phase the commercial real estate market offers attractive properties with above-average earnings potentials. The implementation of the planned investment projects allows us to improve our profitability. At the same time, the capital increase enables us to strengthen our financing structure."
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