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Kion Group To Increase Its Share Capital

Kion Group (KGX.DE) said that it decided to increase the company's share capital by way of a rights issue against cash contributions, using a large part of its authorized capital.

The company noted that a total of 13.11 million new shares will be offered. The new shares will represent about 11% of the current share capital to be offered to the shareholders of the company as part of a rights issue at a ratio of one new share for every nine existing shares.

Strategic shareholder Weichai Power has agreed to fully exercise the subscription rights that it is entitled to as the Group's major shareholder and to acquire 5.93 million new shares.

The company said it will use the proceeds from the capital increase to reduce its level of debt. Once it has received the proceeds from the offering, the Group also expects to terminate the syndicated revolving credit facility that it agreed with its core group of banks under the participation of Kreditanstalt f?r Wiederaufbau (KfW) in May of this year in order to bridge the current exceptional circumstances.

The new shares will be offered to the shareholders of KION GROUP in the period from November 20 through December 3, 2020.

The Executive Board expects to determine the subscription price with the approval of the Supervisory Board on November 30, 2020.

The new shares are expected to be admitted to trading on December 7, 2020 and to be included in the existing quotation in the sub-segment of the Regulated Market with additional post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange on December 8, 2020. The new shares will carry full dividend rights as from January 1, 2020.

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