GEA reaches settlement in award proceedings
Düsseldorf, January 30, 2012 – GEA Group Aktiengesellschaft reached a court settlement today of the award proceedings that were initiated in 1999 and that are described in greater detail in the annual report. Under the settlement, GEA is expected to issue presumably 13.4 million new shares and make an enhanced compensation payment (dividend guarantee) of EUR 0.8 million. This will lead to a dilution in EPS by approximately 6.8 percent.
“We are pleased to have found a reasonable solution for all parties with this settlement. We hope that it will bring to a close proceedings that have been continuing since 1999 and will eventually afford us legal certainty,” said Jürg Oleas, CEO of GEA Group Aktiengesellschaft.
Overview of the settlement effects in aggregate and as change since the 2010 consolidated financial statements:
In addition, those persons who ceased to be shareholders in the course of the 2005 squeeze-out proceedings in return for a cash compensation payment have the option to reverse this former squeeze-out settlement. If all these former shareholders were to exercise their option, the following effects would result:
- Around 1.7 million additional GEA Group Aktiengesellschaft shares would be issued, increasing the number of outstanding shares to around 199 million (rather than 197 million).
- GEA would receive around EUR 44 million in cash inflows.
- Goodwill would be reduced by around EUR 12 million.
- Equity would increase by around EUR 32 million.
- There would be no further effect on earnings.
The validity of the settlement is subject to the condition precedent that the contingent capital of GEA Group Aktiengesellschaft that is needed to create the new shares is finally registered with the commercial register.
About GEA Group
GEA Group Aktiengesellschaft is one of the largest suppliers of process technology and components for the food and energy industries. As an international technology group, the Company focuses on sophisticated production processes. In 2010, GEA generated consolidated revenues in excess of EUR 4.4 billion, 70 percent of which came from the food and energy sectors, which are long-term growth industries. The group employed about 23,000 people worldwide as of September 30, 2011. GEA Group is a market and technology leader in its business areas. It is listed in Germany’s MDAX stock index (G1A, WKN 660 200).
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