Deoleo faces his second chance to reinvent himself. The company of brands such as Carbonell or Koipe is located in full capital increase by means of what is known as an accordion operation, reducing the share capital to zero simultaneously increased to 50 million euros in shares with permanent subscription rights for shareholders.
Half a million titles at a price of 0.1 euros, mostly for the issue premium. Each share will allow one right and it will take up to 59 to subscribe 21 shares of the future oil company. Afterwards, it will bequeath the free warrant for each share, which is used for new shareholders to participate both in an alleged revaluation as in its sale at 10 years sight, or even earlier.
In the new company the British CVC Partners will continue to have the majority control, 51% of the company, and 49% will remain in the hands of the creditors. These could already consider the sale in just five years for what is expected to be the definitive restructuring. Everything is framed in the agreement signed with creditors at the end of last September, reducing its debt to 375 million euros. If the operation is finally signed in its entirety, the syndicated loan will drop to less than half, 242 million from the current 575.
These are the current steps for un value that has fallen into auger until it loses practically all its value, accelerated in its last two days of effective listing in this month of May. Remember that just before the suspension of the CNMV until June 25, its capitalization barely exceeded 33 million compared to the 2000 it was worth in 2007. At the moment, both S&P and Moodys consider this restructuring to be the equivalent of a default.
The independent analyst Antonio Espín already indicated this to us a few days ago when he pointed out that Deoleo “burns in the hands. It is a very dangerous value, with high volatilities. This cannot be recommended ”.
It is the market consensus even though his business has improved. Entered benefits in the first quarter of the year, with earnings of 4.5 million something unknown in the company in the last six years, with applause in the continuous market, and good sales figures since August 2019. From January to March, their increase reached 14% , to exceed 151 million euros.
Therefore a value in restructuring, with the usual extreme precautions for the investor that this entails. And regarding possible new incentives for future shareholders, such as the payment of dividends, we see that nor does it arise until the horizon of 2026, once the new financing has been completed in its entirety.
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