mexican investors Prodi Group And Mota-Engil MexicoCommitted to participating in separate capital increases in February Duro Felguera through Contribution of 90 million euros To be a reference shareholder, They completed their loan payments this Monday. They agreed to advance Asturian engineering in return for the same amount. On October 31, they distributed 30 million (one-third of the total) and announced that the remaining 60 million (the remaining two-thirds) would be donated before December 5, which happened.
The second phase of the operation will consist of capitalizing these contributions.The Mexican groups will thus become reference shareholders of the company through the exchange of loans in exchange for shares in the company in two successive capital increases planned and authorized for this purpose by the general meeting of shareholders last April 13.
Converting loans into equity capital Subject to the condition that the National Securities Market Commission (CNMV), the regulatory body of the Stock Exchange, exempts two Mexican investors from initiating a public offering for the purchase of shares (takeover offer) for 100% of Duro Felguera. In Spain, it is a legal obligation for shareholders with more than 30% control in a listed company, as expected in the Prodi and Mota-Engil case. This rule contains exceptions, and the two investors plan to accept them, according to agreements reached ten months ago with Asturian engineering, under which they will seek exemption from the CNMV.
Here’s the prediction from the two North American groups and Duro Felguera: Existing shareholders of the company remain in the companyEven though its position will be diluted as a result of the operation, the first of the two increases will remain hidden.
The granting of the 90 million loan represents a lifeline for Duro Felguera, whose finances were forced to be bailed out by the central government through SEPI in 2021., accredits the Principality and creditor banks and Prodi and Mota Engil’s commitment to provide capital to the Asturian company for its relaunch. The entry of new shareholders through the capital increase was due to commitments for the temporary rescue of Duro Felguera by the State, as well as demand from creditor banks.
The first of the two capital increases will amount to just over $39.83 million and can be covered on a preferential basis by Duro’s 14,000 existing shareholders.. The undisclosed part will be acquired by Mota-Engil México until it reaches control of a maximum of 24% of the Asturian company. The second increase of just over 50 million (up to a planned total of 90 million) will be subscribed by the Prodi group through the capitalization of the loan previously granted to Duro. for the same amount and for the portion of Mota-Engil’s loan that was not refunded in the first extension. This operation will give Prodi control of 31% of Asturian engineering. In this way, the Mexican alliance will assume 31% to 55% of the capital at the end of the expansions.
Duro said in February that the entry of new shareholders would increase the company’s solvency, strengthen its liquidity and give it access to more guarantees from the bank to grow and pursue new contracts.