The final proceeds will be determined based on the balance sheets at closing. The transaction is subject to customary closing conditions, relating in particular to antitrust approvals. Closing is expected in the first half of 2017.

The transaction is an important milestone for our strategic realignment. We will now be focusing our resources fully on our growth areas Composites - Fibers & Materials (CFM) and Graphite Materials & Systems (GMS) taking advantage of three megatrends mobility, energy supply, and digitization.

—Dr. Jürgen Köhler, CEO of SGL Group

Following the closing of the transaction, approximately 900 employees and six production sites in Germany, Austria, Spain, USA, and Malaysia will be transferred from SGL Group to their new owner.

To maximize proceeds, the cathodes, furnace linings, and carbon electrode (CFL/CE) business, which is also part of the business unit Performance Products (PP), will be sold separately, with the sales process to be continued in early 2017. Given the outcome of the GE sale, SGL Group is now confident to achieve more than the book value of the former business unit PP in the aggregated transactions.

SGL Group is convinced that the proceeds of the GE sale and the expected proceeds of the CFL/CE sale will contribute to a significant reduction of the Group’s net debt position and thereby improve the balance sheet ratios. In addition, the company is currently evaluating the merits and viability of a potential near term rights issue utilizing the existing authorized capital framework to further improve the capital structure and restore key financial metrics to create a solid foundation for the growth businesses CFM and GMS.