OHLA - comment
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 cash flow projections from the board is a concern. OHLA has the cash to make the €40m guarantee payments to Kuwait, but available cash will fall below €50m. OHLA is now seeking a €50m Rights Issue, but getting further equity whilst the board is fighting with major equity holders will be challenging. We expect the banks to be supportive as OHLA raised the full €150m the banks asked for. However, we expect the banks will keep OHLA on a short leash. The SSNs are asset-covered, but prices will suffer from more noise at OHLA.
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