Media Release | MCH Group | Capital Increase and New Shareholder

Financial and structural strengthening to overcome the corona crisis and implement the long-term strategy

The MCH Group intends to strengthen its capital structure and shareholder base in order to cope with the consequences of the corona crisis and to be able to embark on the process of future-oriented transformation. The Board of Directors will propose to the shareholders a comprehensive set of measures including a capital increase totalling CHF 104.5 million, the entry of Lupa Systems as a new anchor shareholder and a restructuring of the group's debt capital at an Extraordinary General Meeting on 3 August 2020. In line with the public sector shareholders, Lupa Systems is expected to hold around one third of the shares. They have signed a long-term relationship agreement and are fully committed to the strategic direction.

In view of the challenging situation in the global exhibition and event business, which has been exacerbated by the COVID 19 pandemic, the Board of Directors and the Executive Board of the MCH Group have devised a comprehensive package of measures to strengthen the group’s capital structure, liquidity position and shareholder base. These measures are urgently needed to overcome the effects of the corona crisis. They are also intended to accelerate the ongoing transformation of the company, to develop classic exhibition and event formats into future-oriented platforms and communities and to strengthen the market position of MCH Group and Art Basel in Switzerland and internationally.

Financial and structural measures

As part of the measures that will be presented as one package to the shareholders of MCH Group at an Extraordinary General Meeting on 3 August 2020, a capital increase will be proposed in two steps: First, the conversion of a loan from the Canton of Basel-Stadt in the amount of CHF 30 million into equity. Second, a cash capital increase of CHF 74.5 million, in which all shareholders will be able to participate by exercising their subscription rights. The independent private investment company Lupa Systems LLC has agreed to fully underwrite the subscription of the new shares and to purchase all shares not subscribed by shareholders.