Pfleiderer announces rights issue

Panel products and engineered wood manufacturer Pfleiderer has conlcuded a rights issue, raising €34.7m to further pay down debt.

The company said the private placement of 5,332,600 new shares was over subscribed, with particular interest from institutional investors in the UK and Switzerland.

"From the recent sale of our treasury shares and this capital increase, we will receive an inflow of of €53.2m," said Pfleiderer CEO Hans Overdiek. "This will further enhance the stability of Pfleiderer AG. In any case, we see ourselves as well prepared to cope with a possible market weakness in 2010 and to emerge as one of the winners from the market consolidation."

Pfleiderer recently said it was considering a rights issue when it secured €800m long-term financing with 30 banks.

The company is planning to reduce net debt by more than €320m in the next four years, resulting in lower interest rates and increased profitability.