Elliott hikes stake in German 3D printer SLM Solutions to 29 pct

Nikon SLM Solutions AG

29/03/2019 09:12

FRANKFURT, March 29 (Reuters) - Activist investor Elliott
has hiked its stake in German 3D printing firm SLM Solutions
 AM3D.DE  to 29.8 percent and is bringing in new supervisory
board members following a series of profit warnings and a slump
in the company's share price. 
    SLM said in a statement on Thursday that Elliott would
acquire all new shares from a capital increase, priced at 7.23
euros ($8.12) a share. SLM said it would reap 13 million euros
in proceeds from the deal. 
    Its shares rose 14 percent on Friday by 0830 GMT.
    Elliott in 2017 invested in SLM in anticipation of a
takeover by General Electric  GE.N , but was caught wrong-footed
as GE turned to peer Arcam instead and walked away from SLM.
    SLM's shares have lost almost 90 percent since the beginning
of 2018 as customers turned their back on SLM given its unclear
prospects, prompting a series of profit warnings. 
    SLM appointed GE manager Meddah Hadjar as CEO this week to
turn around the company, which saw losses accelerate and
revenues shrink in 2018.  urn:newsml:reuters.com:*:nASM001722 urn:newsml:reuters.com:*:nFWN21E0WL
    With Elliott's backing, the company has suggested appointing
former Jenoptik  JENGn.DE  CEO Michael Mertin, former Arcam CEO
Magnus René and former Goldman Sachs manager Thomas Schweppe to
the supervisory board, SLM said.
    "We look forward to continuing our collaborative
relationship with the company," Elliott manager Franck Tuil said
in a statement.
    Elliott plans to transfer 20 percent of the new shares to
hedge fund ENA Investment Capital, which holds 8 percent in SLM
solutions via instruments.
    ($1 = 0.8907 euros)
    

 (Reporting by Arno Schuetze
Editing by Edmund Blair)
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))