Reuters reported that Kloeckner & Co hopes to raise up to EUR 600 million for more acquisitions to drive its quest to become a major global player.
Kloeckner indicated in 2010 that it could turn to the market to help fund a buying spree that has pushed it to No 3 in the United States. It did not say on Wednesday whether the group would raise cash through debt or shares, but indicated it was already looking at possible deals in southeast Asia.
Kloeckner said that it planned to increase its capital in the European summer after spending most of the EUR 700 million funds it had available for acquisitions.
Mr Gisbert Ruehl CEO of Kloeckner said that "We always made it clear that we shall pursue continuous growth financing via the capital markets once the funds available for acquisitions have been spent."
He told reporters that based on Wednesday's market capitalization of around EUR 1.6 billion, around EUR 500 million and even up to EUR 600 million of new money could be raised. The company is studying possible acquisition targets in southeastern Asia. Ruehl cited India, Malaysia, Indonesia, Thailand and Vietnam, and did not rule out North America.
Kloeckner, which has bought 24 companies since its listing in 2006, resumed its acquisition spree last year after putting it on hold during the recession. Last week, it announced its fourth acquisition in two years, marking its entry into an emerging market with a 70% stake in Brazil's Frefer Group.
In April 2011, it paid USD 918 million for MacSteel, boosting its rank from No 10 in the United States in terms of revenue and sales volume.
(Sourced from www.reuters.com)
