Rhön-Klinikum AG has successfully executed its share repurchase programme using tradable tender rights; the first time this method has been used on the German stock exchange.
The repurchase amounted to €1.7 billion, and allowed tender rights to be traded through the stock exchange as a way to return surplus capital to shareholders.
Jens-Peter Neumann, CFO of noted Rhön-Klinikum AG, said: “From our company's point of view, the share repurchase programme we offered together with our partners was a total success and strong proof of the market’s confidence in our plan to distribute a large portion of the sales proceeds to our shareholders via a very flexible instrument.”
Baader Bank was commissioned for the transaction and jointly developed the new process in partnership with the Frankfurt Stock Exchange.
Rhön-Klinikum AG shareholders could trade both tender rights and already tendered shares, and a total of €29.9 million worth of rights were traded.
Christian Bacherl, co-head corporates and markets at Baader Bank AG, said: “The first share buyback using tradable tender rights in Germany enabled shareholders, as planned, to use the high liquidity in tender rights and shares to pursue their individual strategy and 'align' their shareholdings with the 'new Rhön'.”
The share capital that relates to share repurchase reflects leaner corporate structure and could lead to a stable balance sheet for future growth strategies.
Dr Cord Gebhardt, head of primary markets at Deutsche Börse, said: “We are pleased that we could successfully launch this innovative service together with Rhön-Klinikum and Baader Bank. With trading in tender rights, we now offer companies an interesting option for share buyback measures.”
