Yet another difficult morning for Prysmian at Piazza Affari. After Monday's slide (-10%) due to the revision of 2018 Ebitda estimates, the share of the company led by Valerio Battista drops 2,7% to 20,71 euros, a percentage that brings the monthly balance above the quota -17%.
The cause of Prysmian's slip this time is the diffusion of conditions oncapital increase of over 500 million euros required to complete the acquisition of General Cable.
As determined by the company's board of directors, the recapitalization will take place at 15,31 euros, a figure that corresponds to a discount of 25,82% on the Terp, the theoretical price of the share after the detachment of the option right relating to the capital increase. A total of 32.652.314 ordinary shares with a par value of €0,10 will be issued.
The issue ratio is equal to 2 new shares for every 15 held. The notes will be offered for subscription to shareholders and holders of the convertible bond maturing in 2022. One pre-emption right will be credited to each existing share, while 2.915 pre-emption rights will be credited to each convertible bond.
Speaking precisely of the rights, the negotiable period is from August 2 to 13, while for the exercise there will be time until 19 June.
On Wednesday 27 June Prysmian also signed the warranty contract with Mediobanca, Goldman Sachs and Banca IMI.
Going back to the 2018 guidance, the downward revision was due to 50 million additional costs resulting from some problems on the functionality of the submarine cable link between Scotland and Wales called Western Link. However, it should be remembered that, upon approval of the accounts for the first quarter of the current year, the company had already set aside 20 million euros intended precisely for repairs in the same case. The CEO of the group, Valerio Battista, said he believed that the provisions for a total of 70 million should be sufficient to avoid further risks.
