Six days for the shareholders meeting of DIA and Mikhail Fridman who is optimistic that his plan, gets 70% of the remaining capital to 0.67 euros per share, which is equivalent to stay with the supermarket chain for 296 million euros. Financial sources explain that their proposal, which would entail a further extension of 500 million, will gather more support than the council, which proposes an accordion operation of 600 million euros.
This capital increase proposed by the board of directors and ensures Morgan Stanley does not convince the rest of shareholders, starting with the Association of Shareholders Defenders of DIA (AADD), whose members account for 6% of the capital and do not want to be diluted. Nor is the work of the shareholders’ union, led by the French entrepreneur Gregoire Bontoux, who has more than 3% of DIA and is far from wanting to be the white knight to stop the Russian tycoon.
And on the other side, Letterone, the majority shareholder with 29% of the votes, looks strong to gain more support and that its capital increase is supported.
“Morgan Stanley’s proposal is that of creditor banks; it’s a text written by them, “say sources close to Letterone. One of the tests is that among the conditions of the US financial institution, a strong reduction in the indebtedness of the distribution chain is a requirement. Letterone continues in informal negotiations with the bank, to those who have offered to advance the 500 million of the capital increase. His proposal, unlike the council, is that the entire debt maturity (approximately 1,700 million euros) is not paid until 2023.
“If you win Letterone’s proposal at the shareholders’ meeting, the bank will not have a hard time sitting down and speaking formally,” some voices insist, stressing that the situation is different from February 20, date in which Banco Santander, JP Morgan, Barclays and Société Générale, the four major creditors of the supermarket group, slammed Letterone at its first meeting.Other market sources ratify the thesis that Fridman will see a green light for his plan at the shareholders’ meeting. His plan is progressing and he has already complied with the formalities of the European Union and with the CNMV, which has accepted the pamphlet of the takeover, while the Morgan Stanley plan, revealed on Wednesday by the exigencies of the first shareholder, raises doubts .