Allen & Overy has advised global automotive and industrial supplier Schaeffler on the successful placement of around 3.9 per cent of the shares in Continental AG, raising funds of around €950m.
This step, together with a voluntary €325m principal payment, enabled the Schaeffler Group to reduce its debt by approximately €1.275bn to €9.0bn.
A total of 7.8 million Continental Shares were sold at a price of €122.50 per share to a wide range of international investors in an accelerated placement. With this share sale, Schaeffler AG cuts its gross debt from around €6.7bn at present to around €5.8bn, while Schaeffler Holding brings its gross debt down from around €3.6bn to around €3.2bn.
With an aggregate stake of 46 per cent, Schaeffler remains the largest shareholder of Continental AG, re-affirming its long-term strategic interest in the company.
The Allen & Overy team comprised partners Dr Alexander Veith (corporate, Munich), Dr Walter Uebelhoer (banking and finance, Munich), Thomas Neubaum (banking and finance, Frankfurt), Dr Oliver Seiler and Gernot Wagner (both capital markets, Frankfurt); senior associate Dr Urs Lewens (banking and finance, Frankfurt); and associates Simon Schmid, Daniel Epe (both corporate, Munich), Elke Funken-Hötzel, Dr Alexander Schilling (both banking and finance, Frankfurt) and Rebecca Emory (capital markets, Frankfurt).