Commitment
2002: Launch of the investment and acquisition offensive
1. January 2002
2002: Launch of the investment and acquisition offensive
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Volkmar Held
As a freelance writer, Volkmar Held reports for voestalpine on topics that move people. The content of his stories ranges from archaeometallurgy to future technologies.
Record-breaking acquisitions and investment decisions worth billions: Despite global economic challenges, the business year 2001/02 set the course for sustained success.
In 2001/02, voestalpine invested more than EUR 600 million in the expansion of facilities and acquisitions of companies in order to ensure long-term economic security. The funds were used primarily to extend the value-added chain. The market turbulence which followed 9/11 was the first touchstone for the new company strategy.
Key acquisitions
The takeovers of Polynorm, VAE, and Elmsteel allowed advances to be made in processing competence in the growth divisions motion (Automotive) and Railway Systems. With the EUR 127 million acquisition of Polynorm, voestalpine advanced to become a direct supplier to important automobile manufacturers. The Railway Systems division achieved a similarly good position with the takeover of Klöckner Bahntechnik and the remaining half of the global leading turnout manufacturer VAE.
Investment in the steel site in Linz
voestalpine in Linz
With the “Linz 2010” program, the Steel Division began an investment project in the billions with the objective of expanding and comprehensively modernizing the steelmaking site in Linz. Investors attested to the positive future prospects offered by the combination of material and processing competencies by purchasing the shares newly issued during the 2002 increase in capital stock.
Two decades ago voestalpine AG started out on its path to becoming a privatized and exchange-listed company. The ‘IPO 1995–20 years on the stock exchange’ series describes key events on the path to becoming an internationally successful steel-based technology and capital goods group.
Stock market knowledge:
Capital increase
A capital increase is defined as an increase in equity by the stock corporation by issuing new or primary shares. A capital increase must be approved by the Annual General Shareholders’ Meeting with a 75% majority. As the total number of issued shares increases, the proportionate equity interest of those shareholders, who do not exercise their right to purchase such primary shares (pro-rated), decreases (is diluted).Equity capital
Equity capital consists of cash inflows through the owners (who receive shares in exchange), funds raised by capital increases, capital reserves (correspond to a company’s going-concern value that goes beyond the par value of the share), and retained earnings (the previous year’s undistributed profits).Primary shares
Primary shares are newly issued shares, for example, from a capital increase. They are offered first to existing shareholders, who have the statutory right of first refusal, in the same proportion as their existing holdings. Subscription right
The subscription right is the right of a shareholder to purchase new shares at a specified price in the event of a capital increase. The number of shares offered to the shareholder depends on the percentage of share capital of the stock corporation previously held by the shareholder. This enables shareholders to maintain their equity share in the company if the shareholders so desire. Primary shares not acquired by existing shareholders can be subscribed by new shareholders.Voting rights
Voting rights are the rights of a shareholder to participate in decisions based on the shareholder’s certificated equity interest in a company within the boundaries of his legal rights. The voting rights depend on the number of shares held. Fundamentally, one share equals one vote.
Volkmar Held