Troubled Vergnet gets the green light for reserved capital hike
Oct 8, 2012 - Troubled French wind power group Vergnet (EPA:ALVER) said on Friday its reserved capital increase has been approved by France's financial markets watchdog AMF.
The company did not disclose the amount of the planned capital increase.
At end-July, Vergnet, which makes small and medium-sized wind turbines suited to cyclone-prone areas, said it was experiencing financial difficulties despite a 93% year-on-year jump in revenue in the first half of 2012.
The capital increase should help the group boost its equity.
Given the group's hardship, the shareholders acting in concert -- strategic investment fund FSI, family shareholders Marc and Laurent Vergnet as well as wind power specialist Nass & Wind -- have been exempted from the mandatory buyout bid. Such an obligation normally arises when the holding exceeds 50%.
After the reserved capital hike, their stake -- currently slightly below 50% -- will amount to between 64% and 88%.
The capital increase is expected to get shareholders' support at an extraordinary general meeting in November.