Conversion and extraordinary dividend for Buzzi Unicem. On an uncertain day for the European markets, in which the price lists travel weakly weighed down by the increase in infections in the old continent and anxiously await news from the United States on a possible new stimulus plan for the economy, the eyes of the investors are betting on Buzzi Unicem. One hour after opening ordinary shares of the cement company are up by 2,26%, reaching 21,23 euros after having touched a maximum of 22,18. Savings shares exploit which, after having struggled to enter into negotiations, fly by 20,45% to 14,02 euros.
On Friday after the markets were closed, the company announced the go-ahead from the board of directors conversion of savings shares into ordinary shares, offering investors 0,67 ordinary shares for each savings share, with a premium on the price of the latter equal to 22,7% compared to the official stock exchange price on 8 October (18,46% excluding the extraordinary dividend).
The agreement proposal will be submitted to the extraordinary and ordinary shareholders' meeting and to the special savings shareholders' meeting, both scheduled for 19 November and will be successful if the disbursement for the withdrawal does not exceed 25 million euros , equal to 5,7% of total savings. In the same meeting, it will also be necessary to deliberate on the distribution, preparatory to the conversion, of an extraordinary dividend of 75 cents for each ordinary share existing and newly issued. The total amount to be disbursed will be equal to 144,1 million euros.
“The conversion is aimed at rationalize and simplify the capital structure of Buzzi Unicem SpA, reduce corporate obligations and costs associated with the existence of different categories of shares”, explains the company in a note. "By achieving the concentration of ordinary and savings shares in a single listed category, the Conversion will be able to benefit all shareholders, allowing for simplification of the company's governance, aligning the rights of all shareholders and expanding the overall share float ordinary shares, thus creating the conditions for an even greater liquidity of ordinary shares”, concludes Buzzi.
