Allen & Overy LLP advised global automotive and industrial supplier Schaeffler on the successful placement of around 3.9% of the shares in Continental AG, raising funds of around EUR 950 million.

This step, together with a voluntary EUR 325 million principal prepayment, enabled the Schaeffler group to reduce its debt by approx. EUR 1.275 billion to EUR 9.0 billion.
 
A total of 7.8 million Continental AG shares were sold at a price of EUR 122.50 per share to a wide range of international investors in an accelerated placement.  With this share sale Schaeffler AG cuts its gross debt from around EUR 6.7 billion at present to around EUR 5.8 billion, while Schaeffler Holding brings its gross debt down from around EUR 3.6 billion to around EUR 3.2 billion.
 
With an aggregate stake of 46%, Schaeffler remains the largest shareholder of Continental AG, thus reaffirming its long-term strategic interest in the company.

The Allen & Overy team comprised partners Dr. Alexander Veith (corporate), Dr. Walter Uebelhoer (banking and finance, both Munich), Thomas Neubaum (banking and finance), Dr. Oliver Seiler and Gernot Wagner (both capital markets, all Frankfurt), senior associate Dr. Urs Lewens (banking and finance, Frankfurt) and associates Simon Schmid, Daniel Epe (both corporate, Munich), Elke Funken-Hötzel, Dr. Alexander Schilling (both banking and finance) and Rebecca Emory (capital markets, all Frankfurt).