OHLA - comment
If the latest iteration of the capital raise is completed, it is a positive for bondholders (and the Amodio family). However, nothing is over the finish line yet. According to press reports, the Amodio family has agreed with Holzer and José Elías for the new shareholders to inject €150m in capital in two stages. A cash injection of this size would meet what the banks have reportedly demanded and will create pressure to release part of the cash collateral held. The Amodio family will want to retain control, something that Atitlan would not agree to. Holzer is Mexican, and the Amidio brothers may see him as a friendly face. Time is getting short, and Houlihan needs to keep the A&E proposal ready if there are delays.
Holzer and Elías will underwrite the €100m initial capital raise. If no existing shareholders take up their rights, each will end up with 14% of OHLA’s equity (assuming a 20% discount to today’s price of €0.33). The Amodio family would keep a stake of 26%; the remaining shareholders would be diluted from 74% to 45%.
Holzer and Elías will then subscribe €50m to a second issue of up to €75m. Assuming only €50m is raised, the two new shareholders will have 20% each, and the Amodio’s will have 22%; with existing shareholders will be diluted to 38%. There will be no participation rights, but €25m would be available for other investors. We assume none come forward.