CHSH Cerha Hempel Spiegelfeld Hlawati advised Morgan Stanley and Raiffeisen Centrobank in connection with VERBUND AG’s EUR 1 billion capital increase. With an issue volume of EUR 1 billion, the transaction included a capital increase against cash contributions with an indirect subscription right and a public offer in Austria, as well as a private placement in the United States and other countries.
The capital increase was performed without excluding the subscription rights of VERBUND AG’s existing shareholders and was completed successfully by placing more than 39 million new shares with investors. At the end of the book building period, the final subscription and offer price was fixed at EUR 25.50 per share, taking into consideration the share price (“at market”). Existing shareholders – including the Republic of Austria – exercised approximately 84% of their subscription rights. The remaining shares were placed with Austrian and international investors.
VERBUND AG is Austria’s leading electricity company and one of Europe’s largest hydropower producers.
The team at CHSH consisting of partners Edith Hlawati and Volker Glas and associates Christian Aichinger and Irene Eckart (all members of the Capital Markets Team in Vienna) advised Morgan Stanley and Raiffeisen Centrobank on Austrian law with regard to structuring the transaction and preparing the prospectus, in connection with questions concerning the legal documentation, and with regard to executing the indirect subscription offer.