Meyer Burger plans 750:1 reverse stock split to draw investors

Meyer Burger Technology AG (SWX:MBTN) is planning to reduce the number of its shares by a factor of 750 in an effort to attract more investors as the Swiss solar products manufacturer's market value was wiped out in the past year amid the turmoil on the European solar manufacturing market.

The board of directors will propose to the annual general meeting a reverse share split in the ratio 750:1 which will raise the nominal value per share from currently CHF 0.01 to CHF 7.50 (USD 8.32/EUR 7.67), the company said in the invitation to shareholders.

The stock of the Swiss manufacturer has plunged from CHF 0.57 to CHF 0.01 over the past 12 months as European companies in the sector are struggling to stay afloat amid falling prices and Chinese solar panels which have flooded the European market.

The proposal for the reverse stock split comes after Meyer Burger decided to focus its growth efforts on the US market and abandon expansion plans in Germany. In April, the company raised CHF 206.8 million gross from a rights issue aimed at funding the completion of a solar cell manufacturing facility in Colorado, and a solar module plant in Arizona. Each of the two facilities has a capacity of 2 GW.

In Germany, Meyer Burger was one of the proponents of increased state support for the sector and had called for the introduction of a resilience bonus before the federal government gave up such considerations. Citing the lack of resilience measures, the company halted production at the solar module facility in Freiberg in February in preparation for the closure of the plant. The solar cell factory in Thalheim, Germany, was retained to supply the expansion in Arizona.

The annual general meeting will take place on June 25. Shareholders will also vote on the re-election of the board of directors. Franz Richter is nominated for re-election as chairman.

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