Campari Shares Fall After New Share, Convertible Bond Issue
January 10 2024 - 5:25AM
Dow Jones News
By Andrea Figueras
Shares in Davide Campari-Milano dropped after the company said
it raised 1.2 billion euros ($1.31 billion) through a discounted
share offering and an issue of convertible bonds.
At 0945 GMT shares were down 5.3% at EUR9.40.
The Italian distiller said new shares, which represent 5.6% of
its issued and outstanding ordinary share capital, were placed at
EUR9.33 each, down from the closing share price on Tuesday of
EUR9.93.
The company aims to use proceeds to fund its planned acquisition
of Beam Holding France, which owns Courvoisier cognac, for up to
$1.32 billion, it said.
"According to our calculations, the acquisition in the short
term would have brought leverage close to the levels that
management considers as a ceiling," Equita analyst Paola Carboni
said in a research note.
With the measure, Campari could gain financial flexibility and
pave the way for any possible new acquisition, the analyst
said.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
January 10, 2024 05:10 ET (10:10 GMT)
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