West Germany is no market for faint-hearted software and computer services companies, and ADV/Orga AG, 50%-owned by Sema Group Plc, has had to call an extraordinary meeting of shareholders to approve a plan to restructure its capital after losses for the period to June 1989 exceeded 50% of its share capital – that is losses of over $12m. The company is asking holders to permit a consolidation of its shares, reducing the number out to 5m, and then plans to take the total back to 15m by staged offers of new shares at a minimum price of DM100 apiece via rights issues. The company lost about $5m on turnover of about $47m in 1987-88, and the losses got worse as a result of the reorganisation put in place by Sema Group. Its other two large shareholders, Wilhelmshaven AG and Commerzbank AG have agreed to subscribe for any shares not taken up by the small shareholders in the rights issue.
