Spain's Gonvarri Steel to become Abengoa's main stockholder
Abengoa CSP plant. Author: Big Max Power (BMP). License: Creative Commons, Attribution 2.0 Generic
Spanish engineering and renewables firm Abengoa SA (BME:ABG) said Sunday that local industrial group Gonvarri Steel Industries has agreed to invest at least EUR 250 million (USD 269m) in it and become its main stockholder.
The terms of a newly-signed framework agreement between the two calls for Gonvarri Corporacion Financiera to take part in a capital hike that was approved on October 10. It will initially invest EUR 250 million in a capital raise without pre-emptive subscription rights and, according to sources quoted by Bloomberg and Reuters, will later pour a further EUR 100 million. The second investment will be done as part of a EUR-400-million capital increase with pre-emptive subscription rights.
In the first capital increase, Gonvarri Corporacion Financiera will buy class A and B shares at EUR 0.999 and EUR 0.767 apiece, respectively. After the second rights issue, Gonvarri Steel Industries is expected to hold a 28% voting stake in Abengoa. The investor is part of Spain’s Corporacion Gestamp, another industrial group that has its own renewable energy business.
Abengoa’s current main shareholder, Inversion Corporativa IC SA, has already approved the framework deal, which is subject to the signing of a substantial package of financial support for the company by a group of financial institutions.