The lack of appetite around Dia’s umpteenth capital increase has forced its controlling shareholder to make a move. The Russian businessman Mikhail fridman, through its LetterOne investment arm, has committed to an investment of another 193.44 million euros in the supermarket chain within the framework of the additional title allocation period.
Fridman has confirmed his decision at half-day trading this Monday, when barely there were a few hours left until the pre-emptive subscription period expired of the capital increase. In relevant information sent to the National Securities Market Commission (CNMV), the investor explains that “in order to contribute to the subscription of the second tranche, he has decided to request a total of 9,672,296,983 additional shares”.
This package corresponds exactly to 74.819% of the titles of a new issue of the capital increase, with which the result would be the same as if it had participated in the transaction in its preferential round, which Fridman had decided to reserve for the rest of Dia’s shareholders.
In this sense, the Russian businessman had opted for this formula to mitigate the dilutive effect of a parallel expansion through which Debts and credits for 769.2 million euros will be converted to new Dia titles. A transaction that, in addition, reaches figures much higher than those of the section to which it is now launched to participate, whose volume remains at 268.5 million euros.
Until now, Fridman had refused to point out what his financial involvement would be in this branch of the operation. The enlargement brochure actually stated that “No decision has been made regarding its intention to subscribe for shares”. However, it was already anticipated that the Russian would participate “in the event that he did not subscribe, either totally or partially.”
Although the commitment on paper is that the capital increase is ready before October 29 of this year so that all the changes foreseen in its capital structure can be applied, the real objective is that the new shares of Dia begin to mark price already next August 12
After hearing the news, Dia shares soared 23.3%, to 0.0291 euros per share, although intraday crosses reached 0.029 euros. Also the preferential subscription rights of the extension, which until this Monday accumulated a disaster of more than 50% since their initial reference valuation, added a vertiginous rebound of 83.3% up to 0.0022 euros per unit on its penultimate trading day.