extraordinary general meeting of shareholders Hard Felguera Confirmed by the overwhelming majority of the votes cast, two capital increases this is for some a total of 90 million euroswill strengthen society and Mexican investors Prodi and Mota-Engil (with a Portuguese parent company) as new majority shareholders. The operation, which received the support of more than 98 percent of the votes cast, will take place until August as predicted. Prior to that, Prodi and Mota-Engil will provide two separate loans totaling 90 million to Duro Felguera to provide liquidity to the company. These loans will be repaid and capitalized on the date of the capital increase approved today.
Shareholders general assembly reaching 32,562% participation quorum (above the legal minimum of 25% set to approve the capital increase in the second call), far exceeding the support required by law (66.66%) thanks to the current quorum. With this result, company clears its near and medium term future from Asturian multinationalAfter 166 years of history and six years of hardship, it is now facing a new phase of foreign control by the overwhelming majority, unlike the previous experience in the ’90s.
First will be made for one of the two approved capital increases. Just over 39.83 million will be allocated to existing shareholders through the issuance of 52 million new shares, up from €0.7661 per title however, the loan granted to Duro by Mota-Engil México and the accrued interest will be paid. The portion not received by the current owners of Duro will be committed by Mota-Engil México up to a maximum of 24% of the company. This increase, made by the existing shareholders with the pre-emptive right, was accepted with 98.15% of the votes.
second expansionwith a little over 50 million until it reaches the expected 90 million in total, will be subscribed by the Prodi group through the capitalization of the loan. The Mota-Engil loan was previously awarded to Duro for the same amount and the outstanding portion with the first extension. This operation will give Prodi control of 31% of Asturian engineering. This second extension was supported by 98,023% of the votes.
Prodi and Mota-Engil will act together within Duro. The capital increase will give the Mexican alliance 31% to 55% of Asturian Engineering’s capital. depending on how many existing shareholders exercise the privileged share of their allocated slice. Both the board of directors and new investors hope that the majority of existing shareholders will remain with the company and that the company will continue to be listed on the Stock Exchange.
Actually, The operation was subject to the requirement that Mexican investors not have to initiate a takeover bid for 100% of the company.It is a generic liability, with some exceptions, for investors exceeding 30% of its capital in a listed company. With the preferential subscription tranche, the dilution of the company’s more than 14,000 existing shareholders is mitigated.
The entry of Mexican groups, selected after an investor search process evaluating a large list of possible candidates, is considered transcendent for the future of engineering, which is subject to a public rescue operation in 2021 and has already had to undertake further capital. The increase in 2018 to tackle another critical situation.
Duro Felguera currently has a negative net stock position (-142 million at the end of last year), although there is no legal reason for liquidation due to capital reduction and liquidation being recorded as equity for commercial purposes in 2021 by SEPI, banks and the Principality, and because by the end of 2024 – and covid last year , pursuant to a royal decree approved to mitigate the effects of the war and other ups and downs in Ukraine – losses recorded in 2020 and 2021 are exempt from accounting for them. purposes.
The entry of shareholders through capital increase is also a commitment of Duro to its financial creditors, Council of Ministers for the ransom given to the company Through temporary public assistance of 120 million.
The company emphasized entry of new shareholders will increase the company’s solvencywill strengthen its liquidity and give it the ability to access more guarantee lines from banks to grow and enter new contracts. The improvement in contracts in recent months means that the group has actually exhausted its bank guarantees since 2021, so it needs to strengthen its own resources to access more financial support. And continue to promote hiring, recovering Duro’s pre-crisis job levels and a maximum of 180 workers at the end of the year and has been partially implemented since.
Due to their industrial profile, long-term investor status and strong presence in the Americas and Africa, the company believes that the Prodi and Mota-Engil groups can strengthen Duro’s penetration in both continents and contribute to expanding its order book.
Both investors have committed to provide liquidity to Duro Felguera through separate loans totaling 90 million. it will probably be capitalized when the increase is made before August.
Investor entry will put an end to the company’s existing shareholder orphanagemoving since 2018 no reference, and conversely, a strong concentration of capital and Duro will open a phase under foreign hegemony for the second time in its history.