Wednesday, August 3, 2016

Tyrus Capital requires OHL offset losses after its collapse in the stock market – Aristeguinoticias

The investment fund Tyrus Capital demanded that the businessman Juan Villar Mir and his family financially compensate for losses of OHL , generated after its collapse in the stock market two weeks ago.

according to the Spanish daily El Confidencial, the hedge fund helped the entrepreneur and his sons to keep most of the capital of OHL in October last year, so it seemed a solution to the Villar Mir, it has become a problem that threatens to take full benefit of the family holding company.

the news reports that Tyrus Capital entered the capital of OHL in October last year when Mir Villar made a expansion in the company of public works and concessions for 1,000 million euros.

at that time, the Villar Mir family, who at the time owned 58.5% of the construction company did not have enough money to contribute in this transaction almost 600 million euros that corresponded for their participation. Therefore sought a partner.

OHL owners offered to take him 9% of the construction to keep at least 50.01% of the capital. But the Asian group, a few days before closing the subscription period of the extension, refused to buy that package, valued at 125 million euros.

“Given the risk that the operation would cover or the family rights are acquired by a hostile investor in the market, Villar Mir asked for help Societe Generale to find an emergency solution, “he says.

in this regard, the entity French proposed to sell that almost 9% to Tyrus capital, a hedge fund based in Monaco but the contract that the hedge fund bought up 25 million shares of OHL had clauses which showed the weakness of the family.

signed Tyrus 8.3% to 5.02 euros per share , a stock that is now changed to 2.7 euros, 45% below. The current loss is for the hedge fund Monegasque at least 56 million euros. A figure that is allegedly considerably higher as the fund had to buy the rights, in addition to paying the premium. An amount which, in any event, must leave the pocket of the family of the Marquis. This amount is similar to the benefit recorded Grupo Villar Mir in 2015, year in which won 60 million adding all businesses of holding: fertilizers (Fertiberia), raw materials (Ferroglobe), energy, real estate (Space) and the construction itself, “he said.

note that OHL represents 60% of total sales of the corporation, 84% of EBITDA or operating profit and 90% of the consolidated result.

given that the accounts of the listed company have plunged 94% in the first half of the year after acknowledging failed works and, given the collapse of the action to the lowest since July 2003 results the holding company are very negative

OHL has depreciated 50%. daily

In this regard, the newspaper the Spanish published Wednesday that OHL collapsed stock market 24% to 2.11 euros per share, after Moody’s downgraded the rating assigned to the company construction and services to delve into your ‘junk’.

the average recalls that the company has lost 36.6% over three sessions , which means that this decrease is in addition to the firm that controls the Villar Mir group has registered in the past months and represents lowest price since 12 March 2003.

“OHL accumulates a devaluation of more than 50% since the beginning of the year and the decline of Wednesday stringing five consecutive days of bulky downs” he writes.

further relates to the CEO of OHL, Tomás García Madrid , which takes five weeks in office, announced in recent days a program to repurchase up to 45 million euros, or 3% of capital, to stop the fall in the share price, which leaves more than 85% since the summer of 2014.

“the problems in construction are derived from its presence in Mexico, where its listed subsidiary has affected by various accounting scandals and corruption, “concludes the note.

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