Tornos Gains Most in 10 Years on Share Sale Plan: Zurich Mover
Tornos Holding AG (TOHN), a Swiss maker of machines for precision components, rose the most in almost a decade in Zurich trading after announcing plans to sell shares for 75 percent more than yesterday’s closing price.
Tornos jumped as much as 44 percent and was up 43 percent to 5.72 Swiss francs by 10:55 a.m. in Zurich, giving the Moutier-based company a market value of 88.7 million francs ($91.4 million).
Tornos, whose products help in the manufacturing of Swiss watches, aircraft screws and medical devices, said it’s raising about 30 million francs by selling stock at 7 francs each to existing holders, who can buy two shares for every seven they own. The company said its two biggest investors, Walter Fust and Michel Rollier, will buy 1.1 million and 358,209 shares respectively and guarantee the purchase of a further 2.8 million shares. That represents almost 97 percent of the total 4.43 million shares on sale.
“This is a very good solution for Tornos,” Michael Inauen, an analyst at Zuercher Kantonalbank analyst who has a market perform recommendation on the stock, said in a note to clients. “Because the selling price is well above the stock’s current value, only a few new shares have to be issued.”
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