Duro Felguera rebounds almost 6% after approving the Council of Ministers its viability plan

MADRID, 5 Abr.

Duro Felguera rebounds almost 6% after approving the Council of Ministers its viability plan


The shares of Duro Felguera rebounded almost 6% after 10:00 a.m. after the Council of Ministers authorized the updated feasibility plan of the Duro Felguera Group, recipient in 2021 of temporary public financial support amounting to 120 million euros charged to the Support Fund for the Solvency of Strategic Companies (FASEE).

Thus, the company's titles advanced 5.66% at 10.10 am, until exchanging at a price of 0.82 euros.

Specifically, the authorization is part of the process of incorporating an industrial partner, on which the objectives of the updated feasibility plan pivot. The incorporation of an investor was a commitment adopted by the company before the fund managed by the Sociedad Estatal de Participaciones Industriales (SEPI) after obtaining public aid.

Last February, Duro Felguera announced the incorporation of the Development and Infrastructure Promotion Group (Prodi) and Mota-Engil México as industrial partners of the company with the specific purpose of ensuring the long-term viability and sustainable growth of the business group. Asturian.

By virtue of the agreement they reached, the industrial partners assumed the joint commitment to grant the company two loans for a total amount of 90 million euros, of which Mota-Engil México will provide a loan for an amount of 40 million and Grupo Prodi another loan. of 50 million.

Likewise, Duro Felguera will repay the loans through a capital increase of 90 million euros, which includes the capitalization of the loans that requires approval by the general meeting.

The inflow of funds contributed through the investor will allow the business of the Asturian company to increase, generate value and provide solvency and liquidity.

In order to carry out the operation under the terms provided, the authorization for the OPA exemption from the National Securities Market Commission (CNMV) will be necessary, provided for in Royal Decree 1066/2007 on the regime of public offerings for the acquisition of securities. Once the exemption is obtained, the capital increase will materialize.

Likewise, the capital increase by debt capitalization will be executed only after the fulfillment of a series of suspensive conditions, among them the authorizations, in addition to the managers of the fund, of the financial entities and of the Regional Promotion Society of the Principality of Asturias. (SRP), and authorization, where appropriate, within the framework of foreign investment control.