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9/25/2017, 8:47 PM (Source: TeleTrader)
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ThyssenKrupp to issue 10% more shares

ThyssenKrupp AG said on Monday it plans to increase capital stock by one tenth with no-par-value bearer shares. The issue won't include subscription for existing holders. 

"With the memorandum of understanding on the joint venture with Tata, we have provided strategic clarity," said chief executive Heinrich Hiesinger. "But it will take some time for the positive effects of the transaction to feed through to our balance sheet. We will use that time to strengthen our industrial goods businesses right away."

The German steelmaker revealed funds will be used for organic growth in urbanization, mobility and services in particular and for restructuring efforts. The offer will be open for institutional buyers from the country and overseas. Earlier in the month, the company struck a deal with Tata Steel Europe to combine steel assets in the continent before the end of next year. The statement notes Brazilian production facility CSA was divested at the beginning of September.

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