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Germany's Grammer says can issue shares to partner after injunction lifted
April 25, 2017 / 3:51 PM / 5 months ago

Germany's Grammer says can issue shares to partner after injunction lifted

BERLIN, April 25 (Reuters) - Germany’s Grammer won a victory in its efforts to dilute the influence of an activist shareholder after a regional court lifted a temporary injunction on the exercise of a convertible bond, the automotive interiors maker said on Tuesday.

Grammer management planned to bring China’s Ningbo Jifeng on board as a “white knight” against Bosnia’s Hastor, which owns a stake of at least 20 percent in Grammer and has criticised Grammer’s management.

In February Ningbo subscribed to a 60 million euro ($65.6 million) mandatory convertible bond representing approximately 9.2 percent of Grammer’s share capital, but the Hastor Group was granted an injunction to block Ningbo Jifeng from exercising the convertible bond.

A regional court in Nuremberg lifted that injunction on Tuesday, Grammer said.

“This means that there are now no longer any obstacles to the issue of new shares to the strategic partner upon the conversion rights being exercised,” Grammer said in a statement. ($1 = 0.9147 euros) (Reporting by Victoria Bryan; editing by Susan Thomas)

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