Bondholders owning € 74.2 million of convertible bonds have tendered into the offer.
Draka announced a mixed cash and equity offer for all outstanding € 100 million 4% convertible bonds due 2010, issued in 2005 on 8 December 2008
Bondholders owning € 74.2 million or 74.2% of the convertible bond outstanding have tendered into the offer
Draka's reported debt will be lowered by € 51.9 million while simultaneously its shareholders equity position will increase by € 51.9 million (before IFRS adjustments)
Tax-free book profit of up to a maximum of € 18.5 million (before IFRS adjustments) is expected resulting from this transaction
Amsterdam, 19 December 2008 - This press release has been published by Draka Holding N.V., one of the world's leading cable manufacturers for low-voltage cable, cable for OEMs and communication cable.
Draka announced on 8 December 2008 that it will make a mixed cash and equity offer ("the Offer") to each Bondholder (the "Bondholder") for all outstanding € 100 million 4% Convertible Subordinated Bonds due 2010 ("the Bonds") as issued by Draka, of which € 99.9 million was outstanding. Bondholders representing € 74,189,000 of the convertible bond outstanding have accepted the Offer. The remaining € 25,716,000 of Bonds not tendered into the Offer will remain outstanding.
Draka's reported debt has been reduced by € 51.9 million and simultaneously the shareholders equity position improved by € 51.9 million (before IFRS adjustments). As a result of this transaction, Draka expects to make a tax-free book profit of up to a maximum of € 18.5 million (before IFRS adjustments) which will be recorded in the second half of 2008. The total number of ordinary shares outstanding has increased by 5,043,432 to 40,617,160 shares.