Board proposes to split the Rieter Group

22 Mar '11

5 min read

Rieter's textile machinery and automotive component supply businesses are currently well placed in industrial and financial terms to operate successfully as independent companies in their markets and expand their activities

Two attractive, publicly listed companies
Rieter and Autoneum provide investors with an investment choice for two attractive, clearly focused, publicly listed companies. Rieter Holding Ltd. provides more detailed information on the planned separation in its invitation to the Annual General Meeting published today and a separate Shareholder Information Brochure sent out to the shareholders with the invitation. The relevant documents can also be accessed online.

RIETER: A leading supplier of short-staple Spinning Machinery and Components with the broadest global product offering
Rieter Holding's existing Textile Systems Division, which will, if the separation is successfully completed, form the operating business of Rieter, is a leading supplier of short-staple spinning machinery and components with the broadest global product offering.

Rieter is the world's only supplier offering both solutions for spinning preparation as well as all four final spinning processes established in the marketplace.

Rieter has systematically expanded its traditional machine business with technology components and service offerings for short-staple spinning mills and is now one of the world's largest suppliers in the components segment. Rieter supplies spinning mills as well as various machinery manufacturers with technology components. This business is less exposed than the machinery business to the market cycles specific to the industry.

Corporate Governance
Following the 2011 AGM, the Board of Directors is expected to consist of Erwin Stoller (Executive Chairman), This E. Schneider (Vice-Chairman and Lead Director and Chairman of the Nomination and Compensation Committee), Dieter Spälti, Jakob Baer (Chairman of the Audit Committee), Michael Pieper, Hans-Peter Schwald, and Peter Spuhler.

After completion of the separation, the Group Executive Team is expected to consist of Erwin Stoller (Executive Chairman), Peter Gnägi (Head of Business Group Spun Yarns Systems), Werner Strasser (Head of Business Group Premium Textile Components), Joris Gröflin (CFO), and Thomas Anwander (General Counsel).

Dividend policy
Rieter Holding's target pay-out ratio is approximately 30%. Such future dividend will depend on a number of financial and legal factors.

Upon completion of the separation, Rieter Holding is expected to have approximately CHF 130,000,000 in reserves from capital contributions (Reserven aus Kapitaleinlagen), which, subject to certain restrictions and subject to Rieter Holding's dividend policy, can be distributed to Rieter Holding's shareholders without deducting any Swiss withholding tax.

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