DGAP-News: HELLA KGaA Hueck & Co. / Key word(s): IPO
HELLA KGaA Hueck & Co.: HELLA goes public
31.10.2014 / 09:51
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The information contained herein is not for publication or distribution in
or into the United States of America, Canada, Australia, or Japan.
HELLA goes public
- HELLA, a globally leading automotive supplier, is going public on the
Prime Standard of the Frankfurt Stock Exchange
- A private placement of about 11.1 million new shares at a price of EUR
25.00 per share was successfully completed today. This first tranche
constitutes a crucial milestone of the overall transaction. The
placement volume of this first tranche was approximately EUR 278
million
- In the second sub-step, up to 5.75 million additional shares (including
greenshoe option) held by the family shareholders will be offered
- Offer to institutional investors from both Germany and other European
countries in an accelerated bookbuilding, beginning with the
announcement of the price range on 3 November and ending presumably on
6 November 2014
- Trading in HELLA shares is expected to start on 11 November 2014
- HELLA will still continue to be a family business with family
shareholders as long-term majority investor
Lippstadt, 31 October 2014. HELLA KGaA Hueck & Co., a globally leading
supplier of lighting technology and electronic products for the automotive
industry and a key partner of the European automotive spare parts market,
is going public. Trading in Hella shares is expected to start on 11
November 2014 on the regulated market of the Frankfurt Stock Exchange
(Prime Standard), as well as on the Luxembourg stock exchange. HELLA plans
to use the proceeds of over approximately EUR 278 million from the private
placement which has been completed today, to continue its current growth
strategy. The family shareholders will continue as the long-term majority
investor. "HELLA has a highly successful track record in the global
automotive industry. Our key priority is to continue HELLA's status as an
independent family business", says Dr Jürgen Behrend, Managing Partner. He
added that "going public opens new opportunities to successfully continue
our long-term growth strategy."
HELLA shares will be placed in a two-stage transaction structure: HELLA, in
the context of a confidential private placement, has already placed
11,111,112 shares (about 11.1 percent of the registered capital) from a
capital increase (still to be executed) at a price of EUR 25.00 per share
generating proceeds of approximately EUR 278 million. This first step of
the overall transaction, which was completed today, enables HELLA to meet
the requirements for listing its shares on the regulated market of the
Frankfurt Stock Exchange (Prime Standard), as well as on the Luxembourg
stock exchange.
Up to 5.75 million additional shares from the family shareholders will be
offered in the context of an additional private placement outside of the
US, Canada, Australia and Japan in an accelerated book-building. Of these,
up to 0.75 million shares could be allocated within the context of a
greenshoe option. The subscription period will commence on 3 November and
will end on 6 November 2014.This second transaction step is intended to
enable HELLA to further broaden its shareholder base and strengthen the
free float of the HELLA share. "Together with our banks, we have explicitly
developed a structure under which we were able to engage early and
intensively with selected investors. We also placed great importance on
creating a balanced shareholder structure of renowned institutional
investors and family offices already in the first step of the process",
says Dr Jürgen Behrend. "In line with the requirements of the company and
the selling shareholder family we have put particular emphasis on
structuring a transaction with minimal risks for the company and the
selling shareholders."
The free float will amount to about 15 percent, if the greenshoe option is
fully exercised; with the family continuing to own the remaining 85 percent
of the shares. "The family will remain a long-term anchor shareholder of
HELLA", says Dr Jürgen Behrend. "We have signed a pooling agreement to this
effect in which we jointly agree to keep at least 60 per cent of the shares
within the family and to act as one single investor. The agreement will be
in force until at least 2024." The remaining 25 percent of the shares from
the holdings of the shareholder family are subject to a lock-up of six
months in line with the usual market practice. An inclusion in the MDAX is
a mid-term target.
Successful corporate development set to continue
With revenues of EUR 5.3 billion in the 2013/2014 Financial Year, HELLA is
one of the top 50 automotive suppliers globally. Over the past 10 years,
HELLA succeeded in growing revenues by an average 6.3 percent annually -
and even by a total of 10.2 percent since 2008/2009 (based on reported
figures). HELLA grew its adjusted EBIT - adjusted by EUR 52 million for
one-off-effects related to the voluntary severance and partial retirement
program - to EUR393m and generated an adjusted EBIT margin of 7.4 per cent
over the 2013/2014 Financial Year.
"We aim to expand our international footprint and invest in innovation in
order to offer clients around the world even better solutions", says Dr
Rolf Breidenbach, CEO of HELLA. "With our successful growth strategy based
on technology leadership, an attractive client portfolio, operating
excellence and a global presence, we are in an excellent position to
optimally exploit additional market potential. The proceeds from the
transaction will enable us to accelerate our long-term growth strategy."
Technological excellence and innovation leadership are the cornerstones of
HELLA's successful track record. As a technological leader, HELLA benefits
from key megatrends in the automotive industry: environment and energy
efficiency, safety, design and comfort. This puts the company in a prime
position and secures HELLA's standing as a core supplier of leading vehicle
manufacturers. Particularly the market leadership in LED technologies and
selected electronic solutions such as 24GHz sensors for driver assistance
systems open up attractive growth opportunities.
Another key competitive advantage is the disciplined internationalisation
strategy and the targeted approach to global growth markets. They enable
the company to meet the needs of the globally operating automotive
manufacturers while also catering very efficiently to specific regional
market requirements. In the 2013/2014 Financial Year, HELLA generated 57.3
percent of its gross revenues in its automotive segment outside of Europe.
In the first quarter of the current Financial Year (2014/2015), HELLA has
successfully continued its growth trend. Revenues increased by 4.5 per cent
quarter on quarter from EUR 1.26 billion to about EUR 1.32 billion. Over
the same period, HELLA grew its operating earnings (EBIT) by over 50 per
cent to EUR 91 million (previous year: EUR 59 million). "We have a powerful
global operation. Over the past two financial years alone, we increased our
gross profit margins by a total of 2.0 percentage points", says Dr Wolfgang
Ollig, CFO of HELLA. "And we have a sound financial structure in place that
is reflected in a stable investment grade rating by Moody's (Baa2). From
this strong financial foundation, we can continue our success story of
reliable growth and sound profits."
Additional details on the transaction
With the successful completion of the confidential private placement, HELLA
has reached the crucial milestone for going public and ten per cent of the
shares (post capital increase) are already place with institutional
investors and family offices. HELLA shares are expected to start trading on
11 November 2014 under the stock exchange symbol HLE. The International
securities identification number (ISIN) is DE000A13SX22, the securities
identifier (WKN) is A13 SX2.
The prospectus for the admission of shares of HELLA KGaA Hueck & Co. to the
regulated markets of the Frankfurt Stock Exchange (Prime Standard) and the
Luxembourg stock exchange is likely to be approved by the German Financial
Supervisory Authority (BaFin) on 3 November 2014, after which it will be
published on the company website (http://www.hella.com) and will be
available free of charge from the company.
HELLA KGaA Hueck & Co. will announce the price range and the final price
for the shares from the additional private placement presumably on 3
November 2014 as well as the final number of allocated shares presumably on
6 November in an ad hoc announcement.
Bankhaus Lampe and Citigroup have been mandated as Joint Global
Coordinators and Joint Bookrunners for the going public and the related
private placements.
Note:
This text is also available on the internet: www.hella.com/ir
A picture of the HELLA headquarters can be downloaded here.
HELLA KGaA Hueck & Co., Lippstadt: HELLA is a global, independent,
family-owned company with more than 30,000 employees at 100 locations in
more than 35 countries. The HELLA Group develops and manufactures lighting
and electronic components and systems for the automotive industry and also
has one of the largest trade organizations for automotive parts,
accessories, diagnosis, and services within Europe. In addition, complete
vehicle modules, air-conditioning systems, and vehicle electrical systems
are produced in joint venture companies. With more than 5,800 people
working in research and development, HELLA is one of the most important
innovation drivers on the market. In addition, with sales of approx. EUR
5.3 billion in fiscal year 2013/2014, the HELLA Group is one of the top 50
automotive parts suppliers in the world and one of the 100 largest German
industrial companies.
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October 31, 2014 04:51 ET (08:51 GMT)
