Madrid/Oviedo (EFE).- The CEO of Duro Felguera, Jaime Argüelles, has trusted that the entry as industrial partners of the Mexican group Prodi and Mota-Engil México will allow the Asturian engineering and capital goods group to obtain “growth and significant expansion.
Duro Felguera will give Prodi and Mota-Engil México entry into its capital, which will contribute 90 million euros to acquire a maximum of 55% of the Spanish multinational in a capital increase.
The Board of Directors will inform its shareholders and will submit this operation to a vote at the General Meeting scheduled for next April 12 at first call (one day later at a second meeting), at the expense of the pertinent administrative authorizations.
The CEO of Duro Felguera, Jaime Argüelles, pointed out this Thursday in an informative meeting that the operation comes “at a crucial moment” that will allow them “significant growth and expansion”.
According to Argüeles, it is “the definitive solution to move towards a new reality” for the company.
For the CEO, the operation “meets the conditions” for the exemption of a takeover bid (public takeover bid), for which he has requested the majority support of the shareholders of Duro Felguera.
Duro Felguera was rescued in 2021 with 120 million from the Fund to Support the Solvency of Strategic Companies of the State Company for Industrial Participations (SEPI), and with 6 million more from the Principality of Asturias.
The company executed an employment regulation file (ERE) in January that affected 180 workers out of the 1,293 on the workforce.
The operation is structured in a participation of Prodi in the capital of 31% and another of Mota Engil México that can reach up to 24%.
Entry in three phases
The entry into the capital will take place in three phases: the aforementioned loan of 90 million (50 million from Prodi and 40 million from ME Mex), plus an increase with rights of 40 million at a price per share of 0.7661 euros with the objective of injecting liquidity into the company in the form of capital, in which ME Mex guarantees what the current shareholders do not subscribe.
Finally, in a third stage, there will be a capitalization of the loan and interest.
Prodi is a Mexican industrial company whose main activity is the design and construction of public infrastructure, public transportation, oil and gas, energy and tourism projects, among others.
The Prodi Group has a 49% stake in the other investor, Mota-Engil México, and is controlled by José Miguel Bejos.
Mota-Engil México is a Mexican industrial company head of a business group whose ordinary activity focuses on civil works, infrastructures, concessions and engineering, energy, industry and tourism.
It is owned by the Portuguese business group Mota-Engil, owner of 51% of its capital, and the remaining 49% owned by another investor (Grupo Promotor de Desarrollo e Infraestructura, of Mexican nationality).
The director of the Spanish company has admitted that the treasury situation is “still tense”, for which he has indicated that they need to consolidate this operation that he has described as “essential for the future” of the company.
The capital increase will be carried out through credit compensation, in order to capitalize the credit rights derived from the loan contracts signed by Duro Felguera for an amount of 90 million.
The operation, the company points out, “respects the pre-emptive subscription rights of the minority shareholder, giving them the opportunity to participate in a capital increase” of up to 40 million “with the same conditions offered” to investors in the capitalization of their loan.
At the same time, the Duro Felguera minority shareholders union recently asked all members of the company’s Board to acquire shares and subsequently subscribe the titles to which they are entitled in the capital increase.
“The challenge and personal commitment is to place Duro Felguera at 1,000 million in sales in the next four years,” Argüelles assured.
Duro Felguera obtained in 2022 an attributable net profit of 5.4 million, which represents a cut of 76.2% compared to the previous year. EFE