DGAP-News: H&R AG strengthens its international business

DGAP-News: H&R AG / Key word(s): Corporate Action/Capital Increase H&R AG strengthens its international business presence with the acquisition of 51 % of the China-based activities of the Hansen & Rosenthal Group 17.09.2014 / 19:40 --------------------------------------------------------------------- Press release H&R AG strengthens its international business presence with the acquisition of 51 % of the China-based activities of the Hansen & Rosenthal Group - Increase in capital amounting to 5,847,042 shares, on the basis of authorised capital - Development of higher margin specialties business and reinforcement of capital structure - Recognition of the Hansen family as key investors in the company Salzbergen (Germany), 17th September 2014. The board of directors of H&R Aktiengesellschaft (ISIN DE0007757007) has today decided, with the agreement of the supervisory board, in favour of an increase in capital based in turn on authorised capital, subject to the exclusion of subscription rights of existing shareholder. The Hansen & Rosenthal Group, of Hamburg (Germany), is to contribute 51 % of its China-based activities to H&R AG, in exchange for an issue of new shares. H&R AG undertakes, on its part and in exchange for the above contribution to provide the Hansen & Rosenthal Group with 5,847,042 new shares. The issue price of the new shares will be EUR7.10 per new share in the company. The recording of this increase in capital in the company register will be executed at short notice. The China-based activities will be fully consolidated in H&R AG for the first time by 30th September 2014. Once the transaction is complete, H&R AG will directly hold 51% of the shares of H&R China Holding GmbH. This increase in capital based in turn on authorised capital will increase the company's subscribed capital, subject to the partial use of the authorised capital by the issue of 5,847,042 new non-par bearer shares, supposing an increase of EUR14,947,725.52 to EUR91,572,769.63. This takeover of the majority of China-based business activities will result in the bundling of virtually all the international business operations of the Hansen & Rosenthal Group into H&R AG. H&R AG strengthens, with this move, its core business in the chemical/pharmaceutical raw-materials sector, while continuing to build up its higher margin, internationally growing presence in this specialty business. The reinforcement of capital structure resulting from this increase in investment supports the repositioning of the company. "We are pleased that this contribution will further strengthen our activity in the high-growth Chinese market, while increasing our profitability. H&R China achieved sales revenues of approximately EUR93 million last year, and is continuing to develop its presence in its specialties business. The operation provides the basis for sustainable and profitable growth in this high-margin sector, under the overall supervision of H&R AG. This endeavour also makes us more attractive to investors and cooperation partners", says Niels H. Hansen, chairman of the board at H&R AG. The receipt of further H&R shares in exchange for parts of its holding highlights the position of the Hansen & Rosenthal Group as the majority shareholder and recognises its role as key investor in the company. Contact: H&R AG, Investor Relations / Kommunikation, Ties Kaiser Neuenkirchener Straße 8, 48499 Salzbergen Phone.: +49 40 43218-321, Fax: +49 40 43218-390 Mail: Ties.Kaiser@hur.com www.hur.com H&R AG is a Prime Standard listed specialist chemicals company. It develops and manufactures crude oil-based chemical and pharmaceutical products and high-precision plastic parts. Forward-looking statements and forecasts: This press release contains forward-looking statements. These statements are based on current estimates and forecasts made by the Executive Board and the information available to the Board at this time. Forward-looking statements should not be interpreted as guarantees that the projected future developments and results will materialise. Future developments and results are dependent on a range of factors. They comprise various risks and imponderables and rest on assumptions which may prove incorrect. We do not accept any obligation to update the forward-looking statements made in this ad-hoc communication. --------------------------------------------------------------------- 17.09.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: H&R AG Neuenkirchener Str. 8 48499 Salzbergen Germany Phone: +49 (0)40 43 218 321 Fax: +49 (0)40 43 218 390 E-mail: investor.relations@hur.com Internet: www.hur.com ISIN: DE0007757007 WKN: 775700 Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard), Hamburg; Freiverkehr in Berlin, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 287536 17.09.2014