Diebold Nixdorf has completed the "merger squeeze-out" of investors who held onto shares of Wincor Nixdorf.
GREEN The loose ends from the 2016 merger that created Diebold Nixdorf have been tied up.
On Monday, the company announced it had completed the merger squeeze-out of its German public subsidiary that formed when Diebold and Wincor Nixdorf merged.
The move eliminated Diebold Nixdorf AG as a separate corporate entity and ended its listing on the Frankfurt Stock Exchange. The subsidiary formed when some Wincor Nixdorf shareholders declined to tender stock in 2016.
Under German law, Diebold Nixdorf purchased all of the remaining shares in the subsidiary. The company used about $85 million in money set aside after it refinanced last summer.
The German subsidiary caused a financial burden for Diebold Nixdorf last summer. Shareholders of the German subsidiary began redeeming their shares after the parent company reported its year-end loss would top $325 million, more than twice the amount predicted earlier in the year.
The demand to redeem shares forced Diebold Nixdorf to refinance. The company borrowed the $650 million from GSO Capital Partners and Centerbridge Partners, then used $250 million to reduce existing term loans and revolving credit.
Before shareholders started redeeming stock last year, Diebold Nixdorf owned about 77 percent of the former Wincor Nixdorf shares.
Diebold Nixdorf said completion of the merger squeeze-out helps the company's effort to streamline and simplify its corporate structure.
Over the past year, Diebold Nixdorf has started a program called DN Now as it moves to cut costs under leadership of Gerrard Schmid, president and chief executive officer. The plan is designed to produce $200 million in savings and further streamline operations.
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