Cresud goes to the market in search of increasing its capital

The agricultural company Cresud announced that it will seek a capital increase for up to 90 million shares and It will be the first Argentine company to enter the local and international equity market since 2017.

“The company seeks to increase its capital at a very good time due to the commodities boom. We see potential in the regional agricultural sector, in the commercial services activities carried out by our subsidiaries FyO and Agrofy, as well as in our real estate businesses, which we own through IRSA. PWe strive to further strengthen our financial position to take advantage of the opportunities that arise ”, explained the CEO, Alejandro Elsztain.


Through a statement, the company indicated that keep betting on agriculture in Argentina with a track record of 85 years operating in the country and diversifying its regional portfolio (process that began in 2006) with the purchase and operation of fields in Brazil (through its subsidiary Brasilagro), Paraguay and Bolivia.


« We understand crises as opportunities and we believe that this is a good time to continue growing, just like the company did in the crises of 2002 and 2008, « added Elsztain.



Ordinary shares:


Shareholders of record as of February 19 will receive subscription rights and for each 5.5738 ordinary shares will be allowed the subscription of one new ordinary share.


Indicative subscription price: USD 0.472.

Additional rights: Each new ordinary share subscribed will receive, free of charge, a warrant with the right to subscribe an additional ordinary share for a period of 5 years.


The dates of the offer


Record date: February 19, 2021. Start: February 22, 2021. Announcement of the definitive subscription price and exercise price of the warrant February 25, 2021. End of the subscription period: March 5, 2021.



It was also indicated that Holders who subscribe new ordinary shares and / or ADS can simultaneously exercise their right to « increase » through the subscription of new ordinary shares and / or ADS, which may not exceed the number of ordinary shares and / or ADS subscribed in the exercise of their right of preference.


If at the end of the pre-emptive subscription period and the addition of shares remain unsubscribed, the remaining shares may be offered to new investors to acquire them.