Germany: Heidelberg is seeking to improve further improve its market position in the packaging printing segment, and hence has signed an agreement with Chinese post-press specialist Masterwork Group Co (Masterwork) under which Masterwork will obtain an 8.5% stake in the company.
The proposed capital increase provides the opportunity for Heidelberg to acquire a further strategic anchor shareholder with a long- term investment horizon as well as to strengthen its equity.
“The Heidelberg Management Board and Supervisory Board are delighted that our long-standing, successful collaboration with Masterwork is to become much closer. This opens up further potential in the growing packaging printing segment, especially in China the world’s largest individual market. We are expecting better capacity utilisation at our plants across the globe to make us far more efficient, but I would like to stress that this will not weaken our sites in Germany. We are delighted that in Masterwork we are obtaining another long-term investor that firmly believes in the company’s innovative prowess, strategy, and potential for the future,” said Heidelberg CEO Rainer Hundsdörfer, in a statement released by Heidelberg.
The implementation of the capital measure is subject to approval by Heidelberg’s supervisory board. Subject to approval by the relevant bodies on both sides and the Chinese authorities, it should provi- sionally take place by the end of the first calendar quarter of 2019.
The total value of the investment is Euro 68.99m (Rs 5,597m), and the issue price of the new shares is set to be Euro 2.68. If the market price significantly outstrips the envisaged issue price, this will be renegotiated in line with statutory requirements.
“Heidelberg is our ideal partner for jointly leveraging growth potential in the packaging printing market. The stake we are obtaining in this long-established company and world market leader underlines that we are in it for the long haul and are confident Heidelberg has adopted the right strategy,” says Masterwork president Li Li.
The funds Heidelberg generates with the capital increase are to be used to accelerate its digital agenda, processes, and business models, and for general business financing.