Home / Knowledge / News / Textiles / Uster raises CHF 43.9 mn with new strategic investor Toyoto
Uster raises CHF 43.9 mn with new strategic investor Toyoto
19
Nov '09
Dr Geoffrey Scott, CEO, Uster Technologies Ltd.
Dr Geoffrey Scott, CEO, Uster Technologies Ltd.
Uster Technologies Ltd, the leading high technology instrument manufacturer of products for quality measurement and certification for the textile industry, announced that it has raised gross proceeds of CHF 43.9 million and broadened its shareholder base with a new strategic investor Toyota Industries Corporation.

Uster Technologies Ltd issued 1.9 million newly registered shares with a nominal value of CHF 9.40 at a price of CHF 23.09 per share representing a premium of 10% over the volume-weighted average share price of the last 30 trading days. The transaction strengthens Uster Technologies Ltd's financial and operational flexibility and represents a strong strategic endorsement of the Company's leading market position by a major global industrial group offering synergies and new joint business development opportunities.

The transaction was executed on November 2, 2009. The new shares with a par value of CHF 9.40 each were issued from the Company's authorized share capital and represent 22.5% of the outstanding share capital after the transaction. The subscription rights of existing shareholders have been excluded in accordance with the provisions in Uster Technologies Ltd's articles of incorporation. The new shares will be listed on the SIX Swiss Exchange after the approval of the prospectus within the next weeks. Toyota Industries Corporation has agreed to a lock-up with regard to the new shares for a period of 12 months following the share issuance. Given the size of the investment and to strengthen the strategic cooperation, a proposal will be made, for approval at the Annual General Meeting scheduled for March 2010, for a representative of Toyota Industries Corporation to join the Board of Directors of Uster Technologies Ltd.

The proceeds of the transaction of CHF 43.9 million will primarily be used to deleverage the balance sheet by reducing debt positions and to further invest in product and market developments. “We are delighted to have Toyota Industries Corporation invest in Uster Technologies Ltd as a new, long-term and strategic shareholder”, said Dr Geoffrey Scott, CEO of Uster Technologies Ltd. “Toyota Industries Corporation has a long-standing, excellent reputation in the market and shares many common values with the Uster Group. Both companies are focused on quality, invest heavily in innovation and provide excellent customer service and support. The Textile Machinery Division of Toyota Industries Corporation has a marketleading position in the weaving and spinning sector. Together we would have a broader exposure in the textile manufacturing market offering great potential for joint business development initiatives going forward.”

Thomas Dressendörfer, Chief Financial Officer of Uster Technologies Ltd, commented on the transaction: “The new funds we raised provide Uster Technologies with additional financial flexibility to ensure the timely progress in continuously building market volume back to levels we have seen in 2007. This capital increase allows us to reduce the debt profile of the company to


Must ReadView All

'Sportswear is much more mainstream than earlier'

Fashion | On 20th Jul 2018

'Sportswear is much more mainstream than earlier'

The business of sportswear has evolved at a fast pace over the years. ...

Courtesy: YKK

Textiles | On 20th Jul 2018

Japanese firm YKK explores opening office in Uzbekistan

Japanese company YKK recently discussed with the Uztuqimachiliksanoat ...

HFPA alerts member firms on latest US tariff announcement

Textiles | On 20th Jul 2018

HFPA alerts member firms on latest US tariff announcement

The US Home Fashion Products Association (HFPA) has alerted its...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Top executives
Textile industry

The foremost issue is bridging the skill gap

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Manuele Baggini

Comec Italia Srl is a world leader in the production of printing machines. ...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search