26.03.2018
paragon AG DE0005558696
DGAP-News: paragon AG Seeks Conversion Into Partnership Limited by Shares (KGaA)
DGAP-News: paragon AG / Key word(s): Miscellaneous
paragon AG Seeks Conversion Into Partnership Limited by Shares (KGaA)
26.03.2018 / 13:35
The issuer is solely responsible for the content of this announcement.
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paragon AG Seeks Conversion Into Partnership Limited by Shares (KGaA)
- Change of legal form strengthens paragon AG's access to the capital market
- Founder and majority shareholder Klaus Dieter Frers will remain a
long-term shareholder in the company and will continue to support the
current growth strategy
- Shareholders' resolution to be adopted at the Annual General Meeting in
Delbrück on May 8, 2018
Delbrück, Germany, March 26, 2018 - Today, the Management Board and
Supervisory Board of paragon AG [ISIN DE0005558696] unanimously resolved to
propose a change of the company's legal form to a partnership limited by
shares (KGaA) to the shareholders at the Annual General Meeting on May 8,
2018. Both boards expect that the change of legal form will strengthen
paragon AG's access to the equity market and ensure the continuation of the
current growth strategy.
In the opinion of the Management and Supervisory Boards, the conversion of
paragon AG into a KGaA will enable the founder and majority shareholder
Klaus Dieter Frers to support future capital measures without risking a
takeover by unwanted investors. These measures would also include possible
capital increases. Furthermore, the change of legal form will ensure that
Klaus Dieter Frers remains a long-term investor in paragon AG and that the
company can continue its proven growth strategy.
"Klaus Dieter Frers founded paragon and made it an attractive supplier to
the automotive industry. His strategic foresight should continue to benefit
the company in the future," says Professor Dr. Lutz Eckstein, Chairman of
the Supervisory Board of paragon AG. "The conversion into a KGaA will ensure
that paragon AG can continue its successful growth course."
"paragon has always remained a family business at heart," says CEO Klaus
Dieter Frers. "However, access to the capital market is and will remain an
important financing option for future growth. Becoming a KGaA combines the
best of both worlds. The change of legal form is intended to ensure that we
remain a family business in the long term and that future growth does not
rise or fall with my family's willingness to participate in capital measures
to finance growth."
A KGaA is a corporation consisting of a general partner and limited
liability shareholders. The general partner is responsible for the
management and representation of the company. With the change of legal form,
the future paragon GmbH will become the general partner of the KGaA. It will
therefore indirectly take over the management and representation of paragon
AG. The Frers family will hold 100 percent of the GmbH shares.
At present, Klaus Dieter Frers' share of the voting rights would fall below
the 50 percent threshold in the event of a possible capital increase of
paragon AG if he is unable or unwilling to participate in full.
From the shareholders' perspective, the change of legal form could
potentially increase the attractiveness of the paragon share. Experience
shows that the share prices of family-run companies often outperform the
market as a whole. One indication is the performance of indices such as the
DAXplus(R) Family Index. Furthermore, shareholders of paragon AG could
benefit from possible equity measures because this would increase the free
float of the share and thus the liquidity in trading with paragon shares.
Certain investor groups only invest in a share above a certain liquidity
level. In the medium term, this could open the door for paragon to be
included on one of the DAX indices.
Further information about paragon AG is available at
www.paragon.ag/en/investors.
Company Profile
paragon AG (ISIN DE0005558696), which is listed in the regulated market
(Prime Standard) of the Frankfurt Stock Exchange, develops, produces and
distributes forward-looking solutions in the field of automotive
electronics, e-mobility and body kinematics. As a market-leading direct
supplier to the automotive industry, the company's portfolio includes the
Electronics operating segment's innovative air-quality management,
state-of-the-art display systems and connectivity solutions, and high-end
acoustic systems. With Voltabox AG (ISIN DE000A2E4LE9), a subsidiary that is
also listed on the regulated market (Prime Standard) of Deutsche Börse AG in
Frankfurt, Germany, the Group is also active in the rapidly growing
Electromobility operating segment with its cutting-edge lithium-ion battery
systems. In the Mechanics operating segment, paragon AG develops and
produces active mobile aerodynamic systems.
In addition to the company headquarters in Delbrück (North Rhine-Westphalia,
Germany), paragon AG and its subsidiaries operate sites in Suhl (Thuringia,
Germany), Nuremberg and Landsberg am Lech (Bavaria, Germany), St. Georgen
(Baden-Württemberg, Germany), Bexbach (Saarland, Germany) and Aachen (North
Rhine-Westphalia, Germany) as well as in Kunshan (China) and Austin, Texas
(USA).
Financial Press & Investor Relations Contact
paragon AG
Dr. Kai Holtmann
Artegastrasse 1
33129 Delbrück, Germany
Phone: +49 (0) 52 50 - 97 62-140
Fax: +49 (0) 52 50 - 97 62-63
Email: [email protected]
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26.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: paragon AG
Artegastraße 1
33129 Delbrück
Germany
Phone: +49 (0)5250 97 62 - 0
Fax: +49 (0)5250 97 62 - 60
E-mail: [email protected]
Internet: www.paragon.ag
ISIN: DE0005558696, DE000A1TND93, DE000A2GSB86
WKN: 555869, A1TND9, A2GSB8
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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668703 26.03.2018
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