Surprises are often very poorly received on the stock market. Especially when it comes to a lush capital increase. On Thursday, it whetted the appetite of investors for Kion shares thoroughly spoiled. The forklift manufacturer wants to sell a good 13 million new shares. This caused the share price to collapse by more than nine percent to 65 euros in the morning, bringing the papers to the bottom of the MDax the medium sized titles were.
The new shares correspond to around eleven percent of the current share capital and are also to be offered to the previous owners. They have the right to buy one new share for nine existing shares. According to the information, the major shareholder Weichai Power has undertaken to fully participate in the capital increase. With the proceeds, Kion initially wants to reduce its debt. In addition, the group would like to terminate a KfW credit line.
Analyst Sven Weier from the investment bank UBS was surprised by the move. The company probably wants to reduce the level of debt to the level before the corona pandemic. Kion can also use the new money to finance growth in the supply chain technology and forklifts segment and save costs in the future. With the redemption of a credit line from KfW, the shareholders could again beckoned a full dividend.
But that couldn’t convince them on Thursday. The price slipped from the low by almost twelve percent to its lowest level in four months. In the meantime, it fell below the 200-day average again for the first time since mid-June, which many stock market operators consider an important indicator of the longer-term trend. From the Corona low in mid-March, the price had more than doubled by mid-October. The company is now using the high level to increase its capital.
However, expert Peter Rothenaicher from Baader Bank was not really surprised by the capital measure: “Kion’s debt level has increased significantly in the current year”. The coronavirus pandemic and the company’s financing needs would have had a significant impact on operating profit (Ebitda). The forecast by Kion for the free inflow of funds in 2020 of 50 to 150 million euros is “surprisingly weak”. Kion also needs money to finance the growth strategy called Kion 2027, which includes expansion in China and the development of new products. / Bek / ajx / jha /
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