Bang & Olufsen: plans capital increase to face Covid crisis

(CercleFinance.com) - Bang & Olufsen is seeking shareholder approval for a capital increase to safeguard the company throughout the coronavirus crisis, the Danish electronics maker said on Tuesday.


The maker of luxury home-entertainment systems has decided to convene an extraordinary general meeting on 3 June, aiming to obtain approval for a rights issue of approximately 400 million Danish kronor (about 53 million euros).

"Bang & Olufsen is in a serious situation, where we need to raise new capital to help us get through the global Covid-19 crisis," chairman Ole Andersen said.

B&O said its financial performance in March and April has been badly hit by the pandemic and lockdowns in its key markets.

Estimated revenue for the first 11 months of the financial year declined by 26% in local currencies, it said.

The shares are currently down over 9% on the Copenhagen Stock Exchange.

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