Shares in German copper producer Aurubis fell sharply on Wednesday after major shareholder Salzgitter announced a €500 million ($582 million) bond issuance that could convert into a 7.6% stake in the company.
At 0752 GMT, Aurubis shares dropped 6.7% to €108.20, erasing gains posted earlier this month amid strong copper market performance.
The move dampens lingering takeover speculation, as Salzgitter previously held 29.99% of Aurubis. Crossing the 30% threshold would have triggered a mandatory offer to remaining shareholders, a scenario now avoided.
The seven-year bonds, maturing in 2032, carry a fixed annual interest rate of 3.375% and can be exchanged for existing Aurubis shares at an initial price of €145.80 per share.
A syndicate of banks — BNP Paribas, Commerzbank, Deutsche Bank, and UniCredit — served as joint global coordinators and bookrunners for the transaction. The deal is designed to diversify Salzgitter’s financing structure and extend its debt maturity profile.
Salzgitter, whose own shares rose 0.5%, confirmed plans to list the bonds on the Open Market segment of the Frankfurt Stock Exchange.
