At an extraordinary general meeting, Swiss Steel’s shareholders unanimously approved a capital increase, which will be the third in four years. The main shareholder, Martin Haefner, played a key role in securing the approval. Despite potential obligations to make a takeover offer, the Takeover Commission released Haefner from such requirements due to the urgent need for renovation within the company.
Haefner, who invested around 600 million francs in Swiss Steel, promised to underwrite the entire volume of almost 287 million francs if necessary. This would increase his stake in the company to around two thirds. Disagreements among major shareholders had stalled progress on a new business plan for six months and caused tensions within the ownership group.
The company aims to use the fresh funds from the capital increase and refinanced bank loans to ensure survival for at least four years. However, restoring trust among customers, suppliers, and employees will be crucial for its long-term viability. Despite a slight increase in Swiss Steel’s shares following the general meeting, its market capitalization remains low due to lack of investor confidence in the company.
The future leadership structure of Swiss Steel remains uncertain as changes are expected at an upcoming general meeting in May. The company will need to navigate internal disputes and rebuild its reputation to secure a stronger position in the steel industry.
Despite disagreements among major shareholders that stalled progress on a new business plan for six months and caused tensions within the ownership group, Haefner played a key role in securing approval for Switzerland’s latest capital increase at an extraordinary general meeting.
With potential obligations to make a takeover offer due to being one of Switzerland’s largest shareholders, Haefner was released from such requirements by Switzerland’s Takeover Commission due to an urgent need for renovation within Swiss Steel.
At the general meeting held on February 24th 2021 at Lugano’s Dolder Grand Hotel & Spa luxury hotel ballroom , Switzerland’s steel manufacturer received approval from its shareholders for its latest capital increase after voting unanimously.
The third capital increase in four years was essential for Swiss Steel’s future existence but not without controversy as some investors opposed it while others were skeptical about what it would bring.
Switzerland’s steel manufacturer has been struggling financially over recent years with debt piling up and sales declining rapidly. As such, they needed more funding than ever before but there were concerns about whether or not they would be able to secure enough support from their investors.
However, despite these concerns and disagreements among major shareholders that had stalled progress on developing new business plans for over six months causing tension within ownership group management and board of directors faced great challenges but still managed to secure approval from their investors.
