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FCC’S Board of Directors approves €709.5 million capital increase

17/12/2015

FCC’S Board of Directors approves €709.5 million capital increase

  • New shareholders can subscribe at a price of 6 euros per share
  • The Group's core shareholders (Esther Koplowitz and Inversora Carso) have reported that they will, directly or indirectly, participate in the increase
  • Inversora Carso has demonstrated its commitment to subscribe to the surplus shares in the event that some shares remain upon completion of the process
FCC’S Board of Directors approves €709.5 million capital increase

FCC Group’s Board of Directors has approved a capital increase for a total cash amount of approximately €709.518 million by means of issuing and distributing 118,253,127 new common shares for a unit price of 6 euros per share. FCC shareholders will hold preferential subscription rights to the new shares.

FCC core shareholders (Esther Koplowitz and Inversora Carso) have both informed the Board of Directors that they are committed to subscribing, directly or indirectly, to the total number of shares that is proportional to them in the exercise of their preferential subscription rights. Inversora Carso has also affirmed its commitment to subscribe to surplus shares in the event that, upon completion of the preferential subscription period and the additional allocation period, there are unsubscribed shares left over.

The capital increase was agreed upon within the framework of the authorisation granted during the General Shareholders' Meeting held on 25 June 2015. The primary aim is to reinforce the company's capital structure and reduce the level of FCC Group debt.

Chief Executive of the Group, Carlos M. Jarque, informed the Board that the funds obtained through this process will be used to repurchase discounted debt resulting from the so-called Tranche B and to financially back the subsidiary Cementos Portland Valderrivas. The funds will also be used for general corporate purposes. In this regard, FCC aims to exercise its preferential subscription rights in the capital increase announced by Realia on 10 November.

The capital increase agreed upon by the highest governing body of FCC is subject to the double condition precedent of obtaining authorisation from its main financing bodies to use the funds from the increase and of their commitment to proceed to sell, with a discount of at least 15%, a minimum amount of debt arising from Tranche B of the financing agreement that entered into force on 26 June 2014.