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Major shareholder Peter Spuhlers, 65, has lost patience with the stumbling steel giant Swiss Steel. The railway company holds 20 percent of the group and is planning to leave, “Sonntagszeitung” writes.
Spuhler has long been at loggerheads with Martin Haefner, 70, Swiss Steel’s largest shareholder and the owner of Amag, which holds 33 percent. The steel group has suffered huge losses in recent years and will be stabilized with a capital increase of 300 million francs. But Spuhler has no intention of spending any more money on his investment without moving forward with a radical restructuring of Swiss Steels. As the current misery shows, capital increases of almost €600 million have already taken place in 2020 and 2021, with moderate success. Spuhler also called for the dismissal of Chairman of the Board of Directors Jens Alder (66), who he wanted to be replaced by Board Member Barend Fruithof (57).
Spuhler not going far enough in restructuring
In the last five years, Swiss Steel’s losses exceeded one billion euros. After a terrible second half of the year, the steel group’s sales fell 20 percent last year to 3.2 billion euros and suffered a consolidated loss of 294.8 million euros. EBITDA is profit before taxes, interest and depreciation are deducted. The dire financial situation even forced the group to make an emergency stock sale last year. This led to bottlenecks and production had to be reduced.
The group also continued measures to reduce costs. Structural costs are planned to be reduced by 130 million euros from 2023 to 2025. In addition, business areas that did not fall within the main field of activity were systematically sold. These include seven sales companies in Eastern Europe, a sales unit in Chile and participation in a group in the Shanghai Xinzhen Precision Metalwork joint venture. Further actions will be followed. The number of employees also decreased by 1,045 people to 8,812 in 2023. But according to Spuhler, the measures do not go far enough.
Spuhler negotiates sale with Haefner
Spuhler confirmed to “Sonntagszeitung” that he did not participate in the capital increase because the conditions he requested were not met. That’s why he’s currently negotiating the sale of his shares to Haefner. Spuhler is said to have demanded an inappropriately high price for the share package. The company’s share price has fallen by around 90 percent in the last 5 years.
If the capital increase is not made, the company should be able to pay its debts by May. Thus, it is aimed to increase the equity capital ratio, which remains at 12.1 percent, to above 27 percent. According to Swiss Steel, the money will be used to increase production. But fresh capital can run out quickly. (smt)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
