By Carlos Ruano
MADRID (Reuters) – The construction group FCC and services (FCC.MC) announced Thursday a resurrection after renegotiating its massive debt and agree with billionaire George Soros entering the capital in an expansion that could take control around 25 percent of capital.
Esther Koplowitz, shareholder group with a share of 50.03 percent to the B1998 through instrumental, has reached an agreement with Soros to sell their rights subscription to the capital increase of EUR 1,000 million to conduct the group before the end of the year.
“This morning it has signed a binding contract with George Soros that the employer agrees to buy All rights associated with B-1998, “said a source close to businesswoman, adding that this contract Soros acquired a commitment to stay for at least four years and actively participate in the management well into the council.
While waiting for the price to which the subscription rights are sold, the same source estimated that Soros’s investment in the expansion could be between 650 and 700 million.
“Soros management support Juan Béjar (current CEO) and Esther Koplowitz reaffirms its commitment to the company, will hold the debt repayment and has sought a stable shareholder and committed management,” the source added.
As part of the refinancing of the debt associated with its share of 50.1 percent in FCC, Koplowitz had to waive the exercise of subscription rights corresponding to more than 500 of the 1,000 million euros in the expansion.
The underwriting half the extension by the billionaire Soros could give up to 25 percent of the capital after enlargement although the percentage will depend on the conditions finally fixed for the new shares.
The emergence of Soros, and currently controlled through various vehicles around a 3.8 percent stake in FCC, sources with the builder, although participation is not on file with the CNMV, the founder of Microsoft, Bill Gates, Soros and Koplowitz shares a place on the list of the richest people in the world is also located. Through one of his investment funds, Gates said just over a year 5.7 percent of FCC.
The source explained that, in any event, Esther Koplowitz and George Soros will . to ‘like’ shareholdings after enlargement and the corresponding dilution of the Spanish businesswoman not go to the same
“This is good because it makes everything that the company wants to achieve: the expansion of capital, where you have one to buy the rights of B-1998, relieving pressure from banks and thus facilitating the refinancing agreement tranche B of 1.35 billion euros. In short, he clarifies the horizon in that direction, the dilution that takes B-1998, of course, and at least begin to have more visibility in the company, “a trader said.
The FCC actions, which have been subjected to significant volatility in recent months because of difficulties in refinancing its principal shareholder, the head of the group and its cement subsidiary, jumped nearly 8 percent after the news.
NEW FCC MAY BACK TO DIVIDEND
Accusing in recent years restrictions and harsh conditions of the capital markets and the collapse of public works, FCC has renegotiated the terms of its debt, including a debt reduction of 135 million euros and a decrease of EUR 160 million in costs for new interest rates applied
Refinancing agreements and accounting adjustments -. which led the company to declare September losses of 788 million euros – allow extraodinary and 769 million euros before injecting 1,000 million in a Macro enlargement will strengthen the resources of a society that capitalizes today around 1,700 million euros and could pay dividends again.
According to the company, the equity after enlargement will be located around 634 million euros from a negative $ 486 million in data for September 30.
With a net debt at the end of September 6.430 million, FCC plus amortization of debt leverage new funds to strengthen the resources of his troubled cement division and subsidiary of the environment.
As part of the refinancing The group has opened the door to re-distribute dividends if certain conditions are met, including net debt with recourse to four times lower Ebitda, amortization of EUR 1,500 million and EBITDA of credit with higher use of 750 EUR million.
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