The state holding company ÖBAG could invest in the Styrian printed circuit board manufacturer AT&S. The company announced this late Monday evening. As part of a capital increase, ÖBAG could acquire a stake of at least 25 percent plus one share. It would be the first time that the state participates in a successful company.
Negotiations about this are ongoing, but the AT&S board also wants to talk to other investors about possible entry. “To support the further development of the company, the company is planning a major capital increase and further capital measures. The total volume could amount to up to 50 percent of the current share capital, but details are still open.
Approval from the supervisory board is still lacking
Whether the capital measures can be implemented and whether and which investors are involved still depends on “any necessary committee resolutions to reach an agreement with the potential investor and the evaluation of the prevailing market conditions at that time”. The approval of the AT&S supervisory board is also still pending.
ÖBAG confirmed the talks, but they are still at an early stage, an ÖBAG spokesperson told APA. As part of the state holding company’s new business strategy, ÖBAG can, at the request of companies, invest in Austrian companies active in future technologies.
64 percent of the shares in free float
If ÖBAG were to acquire 25 percent plus one share in AT&S, it would be the largest individual shareholder in the printed circuit board manufacturer. Currently, 64 percent of AT&S is in free float, and the foundations of industrialists Hannes Androsch and Willibald Dörflinger each also own 18 percent.
Bad news for the share price
The news was initially not well received by shareholders. AT&S shares fell 15.3 percent to 23.96 euros in early trading on Tuesday.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
