The world's largest press manufacturer will increase its share capital from around €200m to more than €597m via the issue of 155m new shares, as it seeks to return to profit for the first time since 2007/08.
Heidelberg intends to use the proceeds of the new share issue to reduce its financial liabilities, via an early refinance of credit facilities that fall due in summer 2012, and to strengthen the equity base of the company.
Dirk Kaliebe, chief financial officer at the German press giant, said: "This capital increase strengthens the financing structure of the Heidelberg Group for the long term.
"We have added flexibility to our cost structure and further reinforced our competitive position. The capital structure now gives us a financing structure that enables the group to grow profitably."
Chief executive Bernhard Schreier added: "The rights issue is a key step in returning Heidelberg to sustained profitable performance. In the last few months, we have indentified opportunities and framed strategies to secure Heidelberg’s long-term growth.
"Thanks to our organisational and strategic realignment, we will keep on profiting from the economic recovery. In the medium term, expected growth in segments strategically important to Heidelberg — packaging printing, services, consumables and emerging markets — will further boost our success."
Heidelberg shareholders approved the rights issue, which was announced following publication of the group's full-year results in June, with a 97% majority at the AGM on 29 July. In a statement the company said it was aiming for a capital structure that qualifies for an "investment grade rating on the capital markets" in the medium-term.
