Bialetti, the increase to avoid bankruptcy

Part of the capital increase of Bialetti due to the failure of the little man with the whiskers. The shares gained 28.4% to 0.28 euros while the rights, negotiable until 15 November, fell (-4.05% to 0.0332 euros). Recovery is underway but the bankruptcy risk is not removed. "There is significant uncertainty" on the business continuity the group writes in the prospectus and "the risk of failure to execute the Plan itself is very high".Sculptor Ristretto, a vehicle belonging to the Och Ziff funds, undertook to subscribe to the increase for 4.2 million (and has already made the payment). If no one else joins, Bialetti Holding will fall from 64.8% to 50.5% with Sculptor to 21.89%, while in the case of a total subscription Bialetti Holding would drop to 45% and Sculptor would be 19.57%. But Bialetti Holding undertook to sell all the option rights it was entitled to (to 5.43%) and this will raise Och Ziff up to a maximum of 25% of the capital. The financial maneuver also includes a 35.8 million bond, underwritten by Sculptor Ristretto Investments and new debt of 10 million to support the 2018-2023 business plan.

"The full realization of the financial maneuver is a necessary but not sufficient condition" while it is "necessary that the actions of the 2018-2023 Business Plan are carried out". Bialetti should run much more than the market: the sector forecasts – reported by the same company – show an Italian coffee market that grew by 201.8-2023 by 2.5%, while the Plan expects an average revenue growth of around '11% but during the last meeting, on 4 October, the board of directors cut the estimates for 2019 and on the horizon there are always the possible disposals while the net financial debt at 30 September rose to 120.5 million.

Last updated: 22:41


© REPRODUCTION RESERVED