Hero Acquires Bike Maker MIFA
SANGERHAUSEN, Germany – The future of troubled German bicycle and e-bike manufacturer MIFA looks much brighter as OPM Global BV, a subsidiary of Hero Cycles Ltd., has entered into a general commitment as part of an investment agreement.
OPM Global based in Amsterdam, the Netherlands, will invest up to €15 million in MIFA. This stands for a 10% capital increase and gives Hero exclusive rights to take-over the company as well as subsequent rights to a total number of 4.9 million new shares to be issued.
47% stake in MIFA
OPM Global has committed itself to all 4.9 million new shares. Next to that the Hero Cycles subsidiary has agreed also to take-over shares from certain existing shareholders. Who these shareholders are, is not disclosed in the MIFA press release. But earlier reports on the German bike maker made clear that next to investor Carsten Maschmeyer also former CEO Peter Wicht own considerable stakes in the company. With the 4.9 million new shares and the shares bought from ‘existing shareholders’ OPM Global – Hero Cycles is acquiring a majority shareholding of up to 47% in MIFA.
The MIFA press release stipulates further: “The investment commitment by OPM Global entails significant financial contributions of MIFA’s financing partners and is subject to various conditions precedent, especially to the condition of a haircut in the amount of € 15-20 million of the bondholders as well as an exemption from the German Financial Supervisory Authority from the obligation to make a public takeover offer under The German Securities Acquisition and Takeover Act.”
FERI EuroRating Services AG, which MIFA mandated to prepare an issue rating for the corporate bond that it issued in August 2013, notified MIFA that it has reduced the “B-” issue rating to “CC”.
In addition, MIFA announces that this year’s Annual General Meeting of the company is expected to be postponed until the third quarter of 2014 due to the delayed publication of the annual financial statements.