The banks are not happy with governance at OHLA. The relationship between the Amodio brothers and their lenders has been poor, and the
Concern over liquidity resulted in the downgrade to Caa1. Moody’s review provides some clarity around the reason for the cash raise,
We believe the Canalejas arbitration was always a price negotiation; the settlement should pave the way for the asset to be sold
The amount of cash is less important than the fact that the banks are not convinced that transparency at OHLA has improved after the
Operational performance was in line with our expectations but was eclipsed by the upheaval in the boardroom. The first quarter is
The interview with the OHLA CEO contained some new information. If OHLA loses the Qatar (Sidra) case, it has the cash to pay, and
José Elías's taking a bigger stake in OHLA would be better for corporate governance, but we would not expect him to be able to
OHLA has got its €50m Right Issue away, whilst our analysis shows the company had the cash to pay the Kuwait judgement, the cash buffer is enhanced. Governance at
We would not bet against OHLA getting the additional buy-in from minorities to make the 25% shortfall in its €50m capital raise when it
Jose Elías and his consortium would have had €8.5m in rights but declined to participate. The Amodio brothers and Andreas Holzer have now
The Amodio brothers are unwilling to make any concessions to Jose Elías (and the rest of his consortium) over governance. If the Jose Elías
PHLA's 5-year strategic plan is evolutionary rather than revolutionary, but it still could create problems in the longer term. The plan anticipates growth in
OHLA will need to raise at least €33m from shareholders outside of the Amodio family and the various consortia that entered the
OHLA has denied having a cash crisis. This makes more sense to us, given the liquidity available to the company at the time o
If OHLA is out of cash, then how has this happened? The December restructuring left the company with nearly €100m in cash, so something is very
The directors who came onto the OHLA board as part of the Excelsior investment have resigned. We knew governance at OHLA was poor, but the row over the
The Amodio brothers are trying to prevent José Elías's allies from controlling the board, and he, in turn, is trying to dilute the Amodio
The execution of Guarantees in favour of Kuwait will tie up €39.5m of liquidity. OHLA has sufficient liquidity, but the outflow raises the possibility of further
It didn’t take long for the shareholders at OHLA to fall out. A potential €20m cash restriction would explain why the €50m convertible was still on the table after the
Moody’s upgrade takes OHLA out of the Caa range and will allow rating-constrained investors to take positions in
Mohari was always in pole position to buy OHLA’s 50% stake in Canalejas. We see recent arbitration claims from Mohari as part of the price
Board rows at OHLA are inevitable, given the large egos that have now bought into the company. The board does not need to be friends, but they do need to let the managers
The call didn’t have many surprises, but was positive. We are a little perturbed by the suggestion that OHLA might look at development projects in the future, but for
With OHLA having completed the recapitalisation in 25Q1, the FY24 results are a sideshow, but were ahead of our expectations. Our focus will be o
The success of the Rights Issue means that no dilutive convertible was needed. The Amodio family has a 21.6% stake, as they had
If OHLA has secured the full €80m sought in its Rights Issue, this will increase the bond redemptions from €91m to €140m. We have been
We are not surprised that the courts in Qatar wants nothing to do with litigation around the Sidra hospital contracts, and have decided annul
The first €70m of the proposed €150m equity has arrived at OHLA, and the new investors now have board seats. The Amodio brothers are on the hook for
OHLA expects to complete the SSN exchange and the first part of the equity raise by mid-December (from the new investors), which is positive for
Please find our slightly updated model here.
OHLA is well down the path to completing its restructuring, and today’s operational results show that the company is continuing to perform, albeit slightly below our