After Saint-Gobain, it is the turn of Lafarge today launch a capital increase of EUR 1.5 billion to broken prices. Announced on its principle on 20 February and approved Tuesday by the general meeting of shareholders, the recapitalisation of the number one global cement will result in the creation of 6 existing new shares for 13. Shareholders may use their preferential rights to subscribe, starting today and until April 15, included in this proportion, the new shares at a price of EUR 16.65. "The subscription price does appear a valuation haircut of 46.2 closing of the Lafarge action on March 30, 2009" when course the dividend proposed of 2 euros which the new shares are not right, and a 37 haircut after dilution of the capital, said yesterday the Group reveal the financial terms of the transaction.
Recapitalisation is done while the course of stock market of Lafarge is installed under the 35 euros, a level it had not known since the beginning of the 1990s. But, fact need to act and "the discount is not a judgment on the value of the company," said Morgan Stanley, one of the banks of the operation. It is only the consequence of the current market volatility, which is between 40 and 50, while she was only 12 to 13 a year and a half! . Banks guaranteeing the success of the placement, they take the margin, although two major shareholders of Lafarge reference NNS and the Group Bruxelles Lambert indicated as early as February that they would follow at height of their participation (either for a total of 0.5 billion euros).
Debt Orascom
The new shares will be listed from April 28. The significant dilution they involve is a pill hard to swallow for the shareholders, as evidenced by the violent reaction of the market which was a drop of 5.84, yesterday, the course of the cement Fellowship, 31,91 EUR. But, "we will create more value with this operation that without, ensures Bruno Lafont, Lafarge CEO, in an interview to the"voices".". The important point is to reduce the debt to preserve the group credit note and the whole of the platform of measures announced in February, including the part is capital increase, will go to the debt reduction Planner. "What are 3.5 billion euros which will go to priority pay early as 2.6 billion euros of debt related to the acquisition of the Egyptian Orascom. Lafarge, highly indebted, might indeed not be able to meet financial ratios (the "covenants") placed the debt Orascom, which would have made payable financing and scared the market.
This threat gone, the cement can expect to find favor with investors, in particular if, in France, the construction market appears to benefit from an upturn in the coming months recovery actions. "I think that we are in one of the sectors that can restart quickly enough, but it is too early to decide," said cautiously Bruno Lafont. In developing countries, on the other hand, the latest trends seem to be good. "The area that is of concern is central Europe, but on the other hand, we have had confirmation that Asia, Africa and the Middle East go well," observed the CEO of Lafarge, prepares to inaugurate next week's restart of a plant in Iraq.
It does not have an ounce of focus but can take it at will200 at the end of last month the threshold of 2More than 30 leaders and members of boards of Directors brutally dismissedEach candidate was then made proposals which did not rise to debateThis is part of the priorities of the yearBut our Board activities remain profitable he tellsBranero LalzolerigShoemaker on measurementSo better would keep the head on the shoulders In my opinion it is a good case for GecinaThis would be to choose death ultimately