Abengoa’s shares plunge 30% after announcing that it will increase capital – Yahoo Finance Spain

MADRID, 3 (EUROPA PRESS)

Abengoa’s shares plummeted on the trading session today more than 30% after announcing that it will increase capital by 650 million to reduce debt and supplement their sales plan assets.

In particular, the group titles renewable energy technology and closed the day with a decline of 30.87% to a price of 1,415 euros, ranking it in their annual lows.

This collapse in the shares of Abengoa join the sustained since late July, when it announced it would unify the same guarantees of their debt to curb speculation about it. Shares of Abengoa touched 2.8 euros last July 20 and since then have lost almost 50% of its market value.

On Monday, the board unanimously approved propose an extraordinary general meeting approved a capital increase with preferential subscription rights for an amount of 650 million euros to complement its new strategy of asset sales.

The funds will be used to reduce corporate debt 300 million euros and to strengthen its own funds, as announced by the company.

The majority shareholder of Abengoa, Corporate Investment, has said it will participate in the capital increase with new funding.

NEW divestment plan.

Additionally, Abengoa has launched a new plan of divestments totaling 500 million euros, including 400 million already announced last Friday July 31 and Additional divestments of assets bioenergy. The company expects to receive all funds related to this plan gradually until the first quarter of 2016.

It also stressed that the capital increase and the divestment plan are “fully consistent” with its strategy, focusing to maintain and further develop its plan 3.0 with lower investment requirements, take any actions necessary to reduce their financing costs and reaffirm its commitment to improve its rating.

These new actions are a direct response to the increased ‘ capex ‘in 2015 due to the substantially lower funding is expected in transmission lines in Brazil.

The board of directors will meet Monday to review and submit for approval a revised strategic plan including annual flow targets cash and investment ceilings ‘capex’ for the coming years, leading to a BB- ​​rating from the end of 2016.

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