Hogan Lovells advises GRENKE AG on share dividend and rights issue
06 June 2016
6 June 2016 - Hogan Lovells advised GRENKE AG (former GRENKELEASING AG) on the payment of a share dividend and a rights issue in connection thereto.
The shareholders' meeting of GRENKE AG resolved on 3 Mai 2016 a dividend payment of EUR 1.50 per share. The shareholders were given the choice whether to receive a cash payment or partly new shares from a capital increase and partly a cash payment to settle applicable tax duties instead. Shareholders' chose the receipt of new shares for in total EUR 2.789.088,12 partial dividend rights. To create the 16.835 new shares, GRENKE AG increased its share capital, making use of authorized capital. The new shares were offered to the shareholders by way of a rights issue. The rights could be exercised if the shareholder transferred the respective dividend rights and ownership of the co-ownership interests in the global profit share certificate to HSBC Trinkaus & Burkhardt AG as trustee. The new shares were admitted to trading on 2 June 2016.
After having advised Citi as paying and settlement agent on the share dividend of Deutsche Telekom AG in the past three years, Hogan Lovells now again advised the issuer on the structuring and execution of this transaction, obviously of increasing interest to German issuers. Previously, Hogan Lovells had already advised the former GRENKELEASING AG on its share dividend 2014.
Hogan Lovells team for GRENKE AG:
Prof. Dr. Michael Schlitt (Partner, lead), Nona Naydenova (Projects Associate), Christian Schröder, (all Corporate/Capital Markets, Frankfurt);
John Basnage (Partner, US law, London).