Safilo’s Capital Increase Moves Ahead as Multibrands Fulfills Commitment to Offering Price

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PADOVA, Italy—Safilo Group S.p.A. announced Thursday that the conditions between the company and its leading shareholder, Multibrands Italy, that relates to a previously announced offer price for new shares has been fulfilled. Safilo also noted that it was making the announcement at Multibrands’ request. The terms of the subscription agreement with Multibrands was set forth and entered into on Sept. 26, as VMAIL reported. Safilo’s board of directors approved the final terms, conditions and timetable of the pre-emptive capital increase, up to a maximum amount of €150 million, earlier this week, as VMAIL reported.

The share capital increase will take place through the issuance of a maximum of 213,043,881 ordinary shares, with no par value and regular entitlement to be offered to the shareholders on a pre-emptive basis, in the ratio of No. 17 new shares for every No. 5 shares held, for a subscription price equal to €0.704 per each new share, for an aggregate amount up to €149,982,892.22 of which up to €36,643,547.53 as share capital and up to €113,339,344.69 as share premium.

Multibrands has made an irrevocable and conditional commitment to subscribe to the new shares underlying the option rights relating to its existing holding (approximately 41.6 percent), for an amount of approximately €62.4 million, according to the announcement. Multibrands also has committed to subscribe to all the Safilo shares that may be unsubscribed at the end of the rights auction.

The timetable of the offer provides that the option rights for the new shares may be exercised from Dec. 3 until Dec. 17, and the rights may be traded on the Mercato Telematico Azionario organized and managed by Borsa Italiana from Dec. 3 until Dec. 11, according to the announcement.

Safilo’s board met in September and initiated the plan for a share capital increase of a maximum of €150 million. At that time, Safilo said the refinancing initiative was designed to strengthen its capital and financial structure and also was supported by the company’s “reference shareholder,” HAL Holding/Multibrands Italy BV.