By Ulrike Dauer
FRANKFURT--Commerzbank AG (CBK.XE) on Tuesday said it plans to
raise 2.5 billion euros ($3.25 billion) by selling new shares in a
capital increase aimed at repaying German state aid and boosting
the bank's equity capital.
The price, at EUR4.50 a share, marks a 55% discount to Monday's
closing price of EUR9.93, higher than some analysts' expectations
of a 35% discount.
The subscription period for the new shares runs from May 15 to
May 28, roughly in line with the envisaged schedule announced in
March. Commerzbank said 20 new shares will be offered for every 21
existing shares held. The new shares are entitled to a dividend as
of January 2013, and Deutsche Bank, Citi and HSBC agreed to fully
underwrite the capital increase volume.
When the bank announced the measures in March, it said it
planned to take advantage of "attractive" market conditions to
bolster its balance sheet and take another bold step to reduce
government involvement in the bank.
The move will allow the bank to fully repay the remaining EUR1.6
billion in non-voting shares, known as "silent participation,"
still held by the German government's SoFFin financial markets
stabilization fund, and the EUR750 million held by Allianz SE
(ALV.XE).
After the completion of the capital increase, SoFFin's 25%
shareholding in Commerzbank, which it held in addition to the
non-voting shares, is expected to fall below 20%.
The capital increase, which includes subscription rights for
current shareholders, was approved at the bank's annual general
meeting in April. The AGM also approved the share consolidation, or
reverse 1-for-10 stock split, that reduced the outstanding shares
to 583 million shares from 5.83 billion shares with the price
multiplied by 10.
In late April, Deutsche Bank AG, Germany's biggest bank by
market value, raised EUR2.96 billion in an accelerated
bookbuilding, placing all 90 million shares it had intended to sell
and raising 6% more in gross proceeds than the EUR2.8 billion
foreseen.
Write to Ulrike Dauer at ulrike.dauer@dowjones.com