Salzgitter to issue bonds to acquire Aurubis shares - Salzgitter AG Raises €500M for Green Steel Push, Offers Aurubis Shares
Salzgitter AG, a prominent German steel producer, has revealed plans to raise funds via a convertible bond worth 500 million euros, maturing in 2032. This bond, valued at 500 million euros, offers investors the option to exchange it for Aurubis shares, initially representing around 7.5 percent of Aurubis' share capital. Aurubis, a copper producer, is valued at approximately five billion euros, while Salzgitter AG, the largest shareholder with around 30 percent, has a market capitalization of around 1.7 billion euros.
Gunnar Groebler, the CEO (Vorstandsvorsitzender) of Salzgitter AG, is spearheading these strategic initiatives. The first phase of Salzgitter's green steel conversion commenced in 2023, with the first facility slated to go online in 2027. However, the second phase has been postponed due to worsening economic conditions.
Salzgitter AG's bond issuance and the potential exchange for Aurubis shares underscore the company's commitment to its green steel project and restructuring efforts. Despite the delay in the second phase, Salzgitter remains steadfast in its sustainability goals, with the first phase of its green steel conversion already underway.
