Steelmaker Schmolz+Bickenbach says survival at risk after takeover board ruling

Swiss Steel Holding AG

25/11/2019 08:41

ZURICH, Nov 25 (Reuters) - Swiss steelmaker
Schmolz+Bickenbach  STLN.S  said its survival was on the line
after the country's Takeover Board rejected a request from its
two largest shareholders which could make their participation in
a capital hike less likely.
    Liwet Holding is controlled by Russian oligarch Viktor
Vekselberg and BigPoint Holding is the vehicle of Swiss
billionaire Martin Haefner.
    They are among the shareholders being asked to provide up to
614.25 million Swiss francs ($616 million) to Schmolz+Bickenbach
which needs the cash injection to pay down debts after
struggling with losses and collapsing demand for steel this
year.  urn:newsml:reuters.com:*:nL8N27R1GU
    Liwet and BigPoint have asked to be exempted from being
obliged to make an offer for the entire business if they
increase their holdings, a request which the Swiss Takeover
Board denied.
    Under Swiss rules, a shareholder must make an offer when
their holding exceeds 33.33% of the voting rights. BigPoint
wants 37.5% of Schmolz+Bickenbach, up from 17.5% at present,
while Liwet controls a 27% stake.
    Schmolz+Bickenbach described Swiss Takeover Board's decision
as "blatantly wrong," saying without the capital increase the
company faced a considerably increased risk of collapse. 
    "Without such exceptions, the major shareholders will not
participate in the capital increase or will not do so to a
sufficient extent," the company said.
    "Based on the facts, Schmolz + Bickenbach is convinced that
the requests of Martin Haefner/BigPoint Holding AG and Liwet
Holding AG must be approved in order to ensure the continued
existence of the company," it said.
    The company has filed an appeal with the Swiss financial
supervisor FINMA and called on its shareholders to support its
complaint.
    Without a capital increase small shareholders will lose all
their investments and more than 10,000 jobs would be lost
worldwide, 800 of them in Switzerland, it said.
    A extraordinary shareholders meeting is to take place on
Dec. 2 to decide the outcome of the fundraising. 
    ($1 = 0.9972 Swiss francs)

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