TAKKT AG welcomes increased free float
AXA reduces shareholding in TAKKT; AXA bond expected to be converted
TAKKT AG has been informed that AXA has reduced their former 10 percent interest in TAKKT’s share capital to 9.3 percent through stock sales. TAKKT AG welcomes this step, which has initiated the expected increase in the free float. Since the spin-off from GEHE AG (today’s Celesio AG), AXA has held a 10 percent interest in TAKKT AG. This shareholding backs an AXA convertible bond due for conversion into Celesio and TAKKT shares on 12 November 2003. By conversion of this bond by AXA, TAKKT’s free float will be increased by 10 percent to 31.3 percent.
No cash settlement expected
Bond holders currently have the opportunity to prematurely exchange their bonds for shares. By 24 September AXA must announce whether a cash settlement will be performed instead of converting the bond into shares upon maturity. Says Dr. Felix Zimmermann, Chief Financial Officer of TAKKT: “We do not expect bond holders to exchange their bonds prematurely given that the exchange ratio is unattractive compared to the terms of conversion on 12 November 2003. Nor do we expect AXA to perform a cash settlement in view of the current price relations.”
Based on today’s price relations, AXA would need 6.25 million TAKKT shares for the conversion in November. Adds Felix Zimmermann: “Not all of the shares issued to AXA will be put on the market, however, as some investors deliberately invested in the bond to receive TAKKT shares. Moreover, another portion is likely to have been placed in the market already through hedges.” AXA has sold almost half of the 1 million shares not needed for conversion. This means that the number of shares to be put on the market after conversion of the bond on 12 November 2003 is likely to be lower than originally expected.
Extensive roadshow planned in the run-up to the conversion
During the week from 3 to 7 November 2003, TAKKT will contact potential investors in the UK, France and Germany to inform them about the opportunities of the imminent increase in the free float as well as TAKKT’s strategy and recent business development. Additional investor meetings are planned in the Netherlands and Switzerland. The TAKKT roadshows will be supported by Cazenove, Sal. Oppenheim and Cheuvreux. TAKKT’s figures for the third quarter will be published on 30 October 2003.
At the latest Annual General Meeting, the TAKKT shareholders approved a stock repurchase program. This will only be used, however, if the capital market is unable to absorb the shares after conversion of the AXA bond.
Short profile of TAKKT AG
TAKKT AG is the European and North American market leader in the B2B mail order business for office, plant and warehouse equipment. The Group sells its products in over 20 countries. TAKKT AG has been listed on the Frankfurt and Stuttgart stock exchanges since 15 September 1999. The TAKKT share was admitted to Deutsche Börse’s Prime Standard with effect from 1 January 2003.
Bond holders and TAKKT shareholders should address any questions they may have to Hanns Rüsch, Head of Finance/Investor Relations, on +49 (0)711 / 3 46 58-222.
Stuttgart, 15 September 2003