Credit Suisse Receives Shareholders' Support

Credit Suisse

Credit Suisse

Shareholders of Credit Suisse today agreed to a capital increase intended to give the bank the necessary firepower for its expansion strategy.

With a majority of 95 percent of votes present, the board received the approval for the two proposed capital increases, which are expected to generate about 6 billion Swiss francs, Credit Suisse said in a statement on Thursday.

Shareholders accepted the sale of 58 million new registered shares to a limited number of large investors at a price of 22.75 francs each. This will generate an estimated 1.32 billion francs.

They also said yes to the second part of the capital increase. Another 260,983,898 registered shares will be sold to existing shareholders. For each registered share held by November 20, 2015, shareholders get one purchase right and with 13 purchase rights they can buy two new registered shares for 18 francs each. The bank will earn 4.7 billion from this sale.

«Prerequisite for Success»

Analysts expected the proposals to be accepted as the new strategy of chief executive Tidjane Thiam would otherwise have been undermined.

«The strengthened capital base enables us to implement our strategic goals and is an important prerequisite for our future success,» was the conclusion drawn by CS Chairman Urs Rohner at the meeting today.

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