By Emma-Victoria Farr and Lucy Raitano
FRANKFURT (Reuters) -Siemens Energy announced on Wednesday a capital increase via a private share placement to help refinance its 4 billion euro ($4.2 billion) takeover of wind power subsidiary Siemens Gamesa.
The deal aims to raise 1.3 billion euros, according to a message from one of the banks running the deal seen by Reuters.
Siemens Energy, which already owned 67% of Siemens Gamesa, in November launched a bid for the remaining stake, frustrated by a number of profit warnings at the division that had become a problem for its parent as well.
Investor demand exceeded the refinancing deal’s size around half an hour after launch, according to the message, which said orders below 17.32 euros per share risked “missing” the deal.
Books were due to close at 1930 GMT.
The offer and sale of new shares will be made exclusively to institutional investors in the placement, it said.
Siemens Energy’s share capital will be increased by up to 10% through the issuing of new shares, which carry full dividend rights for the current fiscal year.
Citigroup and SocGen are joint global coordinators on the deal alongside joint bookrunners UniCredit in cooperation with Kepler Cheuvreux and HSBC.
Siemens Energy shares slid 7% on Wednesday in a wide sell-off in stock markets worldwide, closing the day at 18.23 euros per share.
Major shareholder Siemens has repeatedly ruled out investing further capital in Siemens Energy.
($1 = 0.9475 euros)
(Reporting by Emma-Victoria Farr, Lucy Raitano and Alexander Huebner; editing by Emelia Sithole-Matarise, Kirsten Donovan)
