Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Bondholders snap up Ekotechnika shares, ahead of flotation

Twitter Linkedin eCard

A share offer from tractor dealer Ekotechnika was heavily oversubscribed, as the company prepares to go public.

The German-based holding company for Russian dealer EkoNiva-Technika group is in the process of going public, as part of a restructuring forced by liquidity issues, and the weak prospects for Russian tractor sales.

Shares were delivered on Wednesday, and will commence trading on the Dusseldorf exchange on Thursday.

'Challenging conditions'

EkoNiva-Technika is Russia's largest dealer in foreign-branded agricultural machinery, including Deere products.

The company's flotation was announced in November, as Ekotechnika revealed a net loss of E25m for the year to the end of September, as a period of restructuring.

The company has been struggling thanks to the slump in the rouble, which has shrunk its euro-denominated receipts from Russian sales, against a backdrop of a weak demand for agricultural machinery.

Last month Stefan Dürr, Ekotechnika AG's majority owner and chief executive, said "the economic situation in Russia means that trading conditions for the distribution of international farming equipment remain challenging".

Debt-to-equity swap

80% of the shares were exchanged directly for debt, as bondholders exercised their right to convert debt in the company into equity.

The rest of the shares went to bondholders who exercised the right to buy left-over shares, delivering cash compensation for bondholders who chose not to convert to equity.

Total demand for the Ekotechnika shares, through debt conversion or purchase, reached 2.5 times the volume of share left available.

The excess shares were sold at E3.50 a piece, implying a nominal E5.4m value for the total deal.


Twitter Linkedin eCard
Related Stories

Will protein prices fight back against fat in dairy markets?

Prices of fats remain elevated against protein values in dairy - at a time when the opposite is true in markets for oilseed products

World phosphate, potash shipments to grow in 2018, helped by Chinese needs

Mosaic forecasts further demand expansion, as it heralds a "transformational year" for its own fortunes, after a 2017 marred by a one-time tax charge

Deere lifts sales hopes - even as it unveils biggest loss in 25 years

The maker of John Deere tractors flags "strengthening" market conditions, but swallows a huge writedown prompted by US tax retorms

Plant Impact agrees takeover by Croda, after failure of Bayer contract

The crop enhancement group, floored by the failure of a supply deal with Bayer, agrees a takeover by a maker of chemicals from anti-wrinkle creams to floor coatings
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069