Deals & Cases

Homburger advised St.Galler Kantonalbank AG in the successful completion of its share capital increase

On May 13, 2019, St.Galler Kantonalbank AG had announced the increase of its share capital of currently CHF 390’139’820, divided into 5’573’426 registered shares, by issuing up to 420’240 new registered shares and by subsequently increasing the nominal value of the registered shares from CHF 70 by CHF 10 to CHF 80 per registered share. The issuance was successfully completed by the issuance and settlement of all 420’240 new registered shares at a price of CHF 420 per share. The issuance was executed by way of a rights offering to existing shareholders, with the exception of the Canton of St. Gallen, who has waived its subscription rights in advance inter alia increasing the free float in the shares. Registered shares which were not subscribed for via the rights offering were subscribed by the public and institutional investors in the course of a share placement. Zürcher Kantonalbank acted as the sole lead manager for the rights offering and the share placement.

Through the share capital increases, St.Galler Kantonalbank AG intended to further strengthen its equity base and ensure strategic room for maneuver for sustainable growth. In addition, it was intended to prepare for any further increase in regulatory capital requirements at an early stage.

Homburger acted as transaction counsel and advised St.Galler Kantonalbank AG and Zürcher Kantonalbank in the structuring of the share capital increases, on the transaction documentation, and on all Swiss law regulatory, tax and transactional aspects of the issuance, offering and listing of the new registered shares as well as the nominal value increase.

The Homburger team was led by partners René Bösch and Benjamin Leisinger (both Capital Markets) and included partner Hansjürg Appenzeller (Capital Markets), partner Stefan Oesterhelt (Tax), counsel Micha Fankhauser (Corporate / M&A) as well as associate Stefan Bindschedler and paralegal Ganna Schneuwly (both Capital Markets).