FINMA grants exemption, clears way for Schmolz+Bickenbach capital hike (updated)

Swiss Steel Holding AG

09/12/2019 09:00

(Adds share price move, shareholder comment)
    ZURICH, Dec 9 (Reuters) - Swiss market supervisor FINMA on
Monday allowed Schmolz+Bickenbach's  STLN.S  big shareholders to
increase their stakes without having to make a takeover offer
for the entire business, boosting the steelmaker's fight for
survival.
    FINMA said Martin Haefner's BigPoint Capital can increase
its 17.5% stake to 37% as a condition of taking part in a
capital increase of at least 325 million Swiss francs ($325.91
million) without the mandatory offer requirement kicking in.
    The exemption runs until the end of 2024. If Haefner still
owns more than 33.3% of the company then, it must make an offer
for the entire company. Shareholders last week agreed terms of a
rescue plan helping conclude a power struggle over control of
the money-losing Swiss steelmaker.  urn:newsml:reuters.com:*:nL8N28C4E8
    Schmolz+Bickenbach's shares surged nearly 13% in early
trading after the decision was announced, which was welcomed by
BigPoint Holding and Martin Haefner, as well as the company.
    "This decision by FINMA clears the way to complete the
capital increase and thus to execute the planned restructuring
of the company with the participation of BigPoint Holding AG and
Martin Haefner," the investor said in a statement.
    "We welcome this decision by FINMA which paves the way for
the capital increase which will secure the future of the
company," said Schmolz+Bickenbach spokesman Ulrich Steiner.
    
($1 = 0.9972 Swiss francs)

 (Reporting by John Revill; editing by David Evans)
 ((John.Revill@thomsonreuters.com; +41 58306 7022; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))