Swiss Steel Group's Shareholders Greenlight Key Proposals at Extraordinary General Meeting

Swiss Steel Group, renowned as a leading provider of special long steel, reported a successful outcome at its Extraordinary General Meeting (EGM) held on April 4, 2024. Shareholders gave their approval to all proposed resolutions, including a significant EUR 300 million capital increase and a reduction in the nominal value of shares, as part of the company's ongoing restructuring efforts.

The approved capital increase involves issuing 3,101,000,000 fully paid-up registered shares priced at CHF 0.0925 each, translating into gross proceeds of approximately CHF 286.8 million. This move, backed by an impressive 99.79% of the votes, aims to secure at least EUR 300 million in proceeds through a currency hedge strategy. Additionally, BigPoint Holding AG, a principal shareholder, has committed to acquiring any unsubscribed shares, providing a robust backstop to the capital raise process expected in April 2024.

In a related development, shareholders endorsed the reduction of the shares' nominal value from CHF 0.15 to CHF 0.08, with a 99.78% vote in favor. This adjustment was necessitated to facilitate the capital increase, given the current trading price of the shares is below the original nominal value. This move is a technicality affecting all shares equally without influencing the total shareholders' equity or altering shareholders' financial and participatory rights.

Another key resolution that passed with 99.27% of votes was the amendment to the Articles of Incorporation, allowing shareholders with a 10% or more stake to nominate candidates for the Board of Directors' election. Swiss Steel Group's Chairman, Jens Alder, expressed gratitude towards shareholders for their patience and trust, which has paved the way for a likely successful conclusion to the company’s refinancing process in the forthcoming weeks.