DEUTZ AG

M&A Activity • Jul 29, 2003

News Details

Ad-hoc | 29 July 2003 08:14

Deutz AG english

SAME and DEUTZ enter into enlarged co-operation Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– SAME and DEUTZ enter into enlarged co-operation DEUTZ AG signed an agreement with the Italian agricultural equipment manufacturer SAME DEUTZ-FAHR GROUP S.p.A. (Treviglio) to develop their existing customer-supplier relationship into a cooperation in the field of Diesel engines for agricultural equipment. Its consummation is subject to approval by DEUTZ AG’s supervisory board and provides for a right to rescission for SAME DEUTZ- FAHR GROUP under certain circumstances. DEUTZ AG and SAME DEUTZ-FAHR GROUP will enter into detailed agreements regarding their future business relations prospectively to be concluded in autumn 2003. To underline the intended long-term relationship SAME DEUTZ-FAHR GROUP has committed to acquire all of the shares to be issued by DEUTZ AG under a capital increase using authorized capital at an offering price of Euro 2.56, i.e. the statutory minimum offering price, to the extent such new shares are not subscribed by the existing shareholders of DEUTZ AG exercising their subscription rights. Deutsche Bank and AB Volvo (publ) as major shareholders of DEUTZ AG have agreed not to exercise their subscription rights. Subject to cartel clearance, the capital increase is to be implemented later this year and will contribute approx. Euro 68.7 million new equity for DEUTZ AG. In parallel, Deutsche Bank has sold its convertible profit participation rights (Wandelgenussrechte) in DEUTZ AG to SAME DEUTZ-FAHR GROUP and has granted a call option for its shares in DEUTZ AG to SAME DEUTZ-FAHR GROUP in which Volvo has the right to participate. Cologne, 29 July 2003 / DEUTZ AG / Management Board end of ad-hoc-announcement (c)DGAP 29.07.2003 ——————————————————————————– WKN: 630500; ISIN: DE0006305006; Index: SDAX Listed: Amtlicher Markt in Düsseldorf und Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hamburg, Hannover, München und Stuttgart 290814 Jul 03