News
Bechstein raises cash
Andy Barrett Feb 2 2010, 9:16am
Piano maker hits target of 4.5m euros following share creation
C Bechstein's efforts to raise 4.5 million euros from existing shareholders and new institutional investors has proved successful, the German piano manufacturer announced yesterday (February 1st). The capital raising exercise was undertaken to consolidate core capital and to reduce the amount of borrowed funds that the company considered it needed for existing investments. Its share capital has now increased by two and a quarter million euros, from 5,787,633 to 8,037,633 euros.
The new shares were purchased by existing shareholders by way of a subscription right to which they were entitled and by way of a warrant option. Any shares that were not subscribed by shareholders were offered for sale to selected institutional investors as part of a private placement.
The announcement, which came from Bechstein's UK distributor, Intermusic, stated that confidence in the company is high "as a result of the vision and management of Bechstein's owner Karl Schulze making solid commercial decisions throughout his tenure".
Among these decisions is Bechstein's pulling all production out of the Far East back into its factories in Germany and the Czech Republic, the latter of which, the statement read, is working through the night to meet demand.
Turnover within C. Bechstein Pianofortefabrik and in the Bechstein Group is going according to plan. Compared to 2008/9, the forecast is that there will not only be an increase in sales figures, but also in the net annual profit. The results will be published at the end of the first quarter of 2010.
In the UK, Bechstein sales remain strong and the brand was recently chosen above two competitors by London’s Royal Academy of Music to furnish its new practice suite.
