Bang & Olufsen: details capital increase
(CercleFinance.com) - Danish electronics maker Bang & Olufsen confirmed the details of a capital increase intended to safeguard the company in the wake of the coronavirus crisis.
The maker of luxury home-entertainment systems said it plans to raise 409 million Danish kronor (about 55 million euros) through the placement of 81.8 million new shares at a subscription price of five kronor per share.
Under the terms of the deal, the company's existing shareholders will be allocated two subscription rights per share.
The proceeds are intended to serve as a "financial cushion" following the Covid-19 outbreak, B&O said, and will help fund the expected losses for the current financial year.
Its stock was up over 10% on Thursday.
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