HeidelbergCement plans capital hike

HeidelbergCement plans capital hike
Published: 07 September 2009

HeidelbergCement plans to implement a capital increase in September, estimated at between EUR1.2bn (US$1.7bn) and EUR1.5bn, a German daily said on Saturday, citing sources.

The banks handling the capital hike are Deutsche Bank and Morgan Stanley, Boersen-Zeitung said, adding both are now working on its prospectus.

HeidelbergCement had announced plans to sell all non-core assets to raise cash and pay down debt after its $16 billion takeover of British rival Hanson in 2007.

The group won a US$12bn lifeline from creditor banks in June, after reporting debt of EUR11.6bn at the end of 2008.