Investing.com – The capital increase is causing strong fluctuations in Fincantieri shares (BIT:). The shares lost more than 8% this morning on Piazza Affari after yesterday they advanced by +24% to 4.78 euros. At the same time, the option right fell by 7% after the leap forward of more than +40% recorded in the previous session. The operation ends on July 11th and the rights are negotiable until July 5th. Let’s see how it works…
How the capital increase is structured
The capital increase is divided into 2 tranches: a first of 400 million and a second of 100 million, to be carried out through warrants once the first has been concluded.
The board of directors has set the price at which the Fincantieri shares resulting from the rights issue will be offered at 2.62 euros (0.10 cents for share capital and 2.52 euros for share premium) and has resolved to issue a maximum of 152,419 million new shares (with the same number of Warrants combined free of charge), to be offered as an option to shareholders in the ratio of 9 new shares for every 10 Fincantieri shares held.
Furthermore, with regard to the warrants, the company led by CEO Pierroberto Folgiero has set the subscription price of each condensed share at 4.44 euros (0.10 cents for share capital and 4.34 euros for premium) as well as established the ratio of exercise in 5 conversion shares for every 34 warrants exercised, for the issue of a maximum of 22.415 million conversion shares.
The new shares incorporate a discount of 32.2% compared to the theoretical ex-rights price, calculated based on the closing price on June 20th. The stock options are exercisable from 24 June to 11 July and are negotiable from 24 June to 5 July.
What is the capital increase for?
The 500 million euro operation approved by the board of directors last June 11 will help the shipyard giant to buy Leonardo’s “Underwater Armaments Systems” (UAS) business line which will allow Fincantieri to consolidate its role as technological integrator in diving and naval defense sector.
Between the fixed component (300 million) and the variable part (115 million), the overall deal has a maximum value of 415 million, therefore lower than the capital increase.
