The Swiss Steel shareholders, at an extraordinary general meeting, unanimously approved the latest capital increase. This was the third in four years and was crucial for the company’s future. Martin Haefner, the main shareholder, played a key role in securing approval. He invested around 600 million francs in Swiss Steel and promised to underwrite the entire volume of almost 287 million francs if necessary, increasing his stake in the company to around two-thirds.
Despite potential obligations to make a takeover offer, the Takeover Commission released Haefner from such requirements due to the urgent need for renovation within the company. The two other main shareholders, Liwet and Peter Spuhler, did not oppose the capital increase. However, disagreements among major shareholders had stalled progress on a new business plan for six months, causing tensions within the ownership group.
The uncertainty regarding leadership positions within the company added to management’s challenges. Despite a slight increase in Swiss Steel’s shares following the general meeting, its market capitalization remains low, indicating a lack of investor confidence in the company. The company aims to use fresh funds from the capital increase and refinanced bank loans to ensure survival for at least four years. However, restoring trust among customers, suppliers and employees will be crucial for long-term viability of Swiss Steel.
At an upcoming general meeting in May changes are expected in Swiss Steel’s leadership structure as it navigates internal disputes and rebuilds its reputation to secure a stronger position in the steel industry.