The Borussia Dortmund GmbH & Co. KGaA has announced its decision to implement a capital increase including subscription rights by way of issuing up to 24.5 million new non-par value shares at a subscription price of 4.66 euro per share. The new shares, with no subscription rights for existing shareholders of BVB, will be offered to three investors by way of private placement. Evonik Industries AG, PUMA SE and SIGNAL IDUNA Allgemeine Versicherung Aktiengesellschaft, a corporation of the SIGNAL IDUNA GROUP, have agreed to subscribe to 17.60 million of these new shares.
Borussia Dortmund’s goal was to enter and consolidate a strategic partnership with three renowned companies until 30 September, with the partners operating at high social and ethical standards and representing a sponsorship interest in BVB on a sustainable basis.
Evonik already acquired a stake of nine percent in Borussia Dortmund through a capital increase on 27 June 2014 while also extending their shirt sponsorship deal until 30 June 2025.
Running until 30 June 2020, PUMA’s equipment contract was already provided on a long-term basis.
On Thursday, Borussia Dortmund and SIGNAL IDUNA agreed to an extension of the current naming rights contract for the stadium, which has been in place since October 2005, until 30 June 2026.
PUMA and SIGNAL IDUNA also plan to acquire a stake in Borussia Dortmund
Combined with the capital increase from June 2014, Borussia Dortmund expects gross proceeds of over 140 million euros from Thursday’s announced capital increase (under the assumption that all new shares will be acquired). The company intends to use an amount of about 40 million euros for the reduction of financial liabilities, while remaining funds will be held to increase financial resilience as a liquidity reserve. A potential purpose for the use of such liquidity may be future growth supporting investments (which, as of today, have not yet been determined) into the Company's assets.
Borussia Dortmund’s capital increase is managed by Close Brothers Seydler Bank AG, Frankfurt am Main.
Hans-Joachim Watzke (Borussia Dortmund, Chief Executive Officer): “We are delighted that Evonik, PUMA and SIGNAL IDUNA, three of BVB’s most important sponsors, are becoming shareholders. As an emotionally and very positively charged company, Borussia Dortmund will act, also due to its domestic and international appeal, as a veritable partner. These partnerships bring not only financial benefits for BVB, we are also looking forward to an intensive networking with our innovative sponsors in Germany and abroad.”
Ulrich Leitermann (SIGNAL IDUNA GROUP/CEO): “Besides a long-standing tradition, BVB and SIGNAL IDUNA Group share a successful partnership. Therefore we have decided to support BVB’s solid and sustained growth. We benefit from a further increase of brand awareness and the very positive sales momentum which we want to strengthen further through the equity investment.”
Bjørn Gulden (PUMA/CEO): “It’s impressive to see what Borussia Dortmund has achieved in recent years - both in sports and as a business. We are looking forward to continuing our partnership with the club, not just as a sponsor but for the first time as a shareholder, and we will work together to reach our common goals. As one of the top clubs in Germany and Europe, Borussia Dortmund is the perfect fit for PUMA, increasing its brand awareness on a national and international level.”
Dr. Klaus Engel (Evonik/CEO): “We have always stressed how much Evonik values the partnership it has with BVB. As main sponsor of Borussia Dortmund, we welcome the fact that two other partners have decided to acquire a stake in the club as well. This will further strengthen BVB’s prospects in international competition, both in sports and in business.”