EQS-News

Einhell plans stock split to enlarge sharholder base

EQS-News: Einhell Germany AG / Key word(s): Corporate Action Einhell plans stock split to enlarge sharholder base 14.05.2024 / 10:18 CET/CEST The issuer is solely responsible for the content of this announcement. Einhell plans stock split to

enlarge shareholder base

 

Landau a. d. Isar, May 14th, 2024 – To make it easier for general investors to buy Einhell shares and expand their existing holdings, Einhell Germany AG is planning to split its stock in a ratio of 1:3. The Executive Board has submitted the relevant proposal to the Supervisory Board for inclusion in the agenda for the upcoming annual general meeting. Part of a focused capital market strategy, the measure is to be adopted at the annual general meeting held June 28th, 2024 and implemented before the end of the year.

 

Broader-based capital market strategy

 

“We want to make the preference stock more accessible to a broader base of shareholders alongside institutional investors. Our long-term goal is to deliver a rise in the share price and hence our market capitalization, as the split will make the stock more appealing to investors,” says Jan Teichert, CFO of Einhell Germany AG. “An ‘apparent’ or ‘perceived’ higher euro price per share is something of a barrier to entry for many investors. That is why the shares are to be split, as this will lower the price and make it easier to buy the stock. For existing shareholders, the number of shares they hold will be increased, so there will be no change in terms of the value of their portfolio. Stock splitting generally tends to enhance the visibility and attractiveness of the share, and that is also what we expect to see for the Einhell stock.”

 

The proposed stock split is one of several measures in the company’s capital market strategy. In the preceding years, for instance, research studies had been commissioned from Warburg Research and Hauck-Aufhäuser/Nuways with the aim of providing shareholders with a broad range of financial analyses about the company. The analysts express optimism, giving a clear buy recommendation based on the Group’s strong cash flow and its long-term strategies, among other reasons.