Schaeffler Group, a German auto parts maker, will sell a 4% share of Continental AG, according to Reuters.
Schaeffler will be taking advantage of a more than 22-year high share price, 126.95 euros, to help pay off its debts. The company announced Monday it will place 8 million shares, worth roughly 1 billion euros, with investors in order to pay creditors.
Additionally, the auto parts maker will use an additional 325 million euros from its free cash flow to reduce its liabilities.
Following its debt-financed takeover bid for Continental in 2008, Schaeffler’s liabilities soared. This sale is just one of many measures to help cut debt.
The company agreed to not sell any more Continental shares for 180 days.