ad hoc

SKW Stahl-Metallurgie Holding AG: Indian Somani Group submitting non-binding letter-of-intent to strengthen the equity of SKW Stahl-Metallurgie Holding AG; Conditions: Restructuring contributions by providers of capital

München (Germany), June 28, 2016. The Executive Board of SKW Stahl-Metallurgie Holding AG, München (Germany), ISIN DE000SKWM021, informs that the Indian Somani Group submitted a non-binding letter-of-intent to become a shareholder in the Company in the context of a financial restructuring. According to Somani Group’s proposal, a transaction should entail a significant reduction of the registered capital and a subsequent capital increase against cash with subscription rights for the shareholders. The letter-of-intent stipulates that the execution of the capital increase against cash is guaranteed by the Somani Group (“backstop“) under the condition that the Somani Group is to hold at least 51% of the shares of the Company after the transaction.

From the point of view of the Somani Group, the execution of a transaction would furthermore necessitate that the key providers of debt capital to the Company participate in the financial restructuring by own contributions.

Today, Supervisory Board and Executive Board of the Company were made aware of the fact that the largest shareholder of the Company (Group First Holding GmbH/MCGM GmbH) had offered to the Somani Group to commence talks about a participation in a transaction.

The negotiations are in a very early stage, and it is not secured whether a transaction with the Somani Group for the financial restructuring of the Company is going to materialize. Supervisory Board and Executive Board of the Company will diligently assess the transaction as well as alternatives for a financial restructuring.