Campari: financing of Courvoisier completed

(CercleFinance.com) - Campari announced on Wednesday that it had successfully completed two private placements, for a total of E1.
2bn, to finance the acquisition of the Courvoisier cognac brand.

Under an accelerated procedure, the Italian spirits group said that it has put some E650m worth of new ordinary shares on the market, at a unit price of E9.33.

This price represents a discount of around 6% to last night's closing price.

The second operation enabled the company to raise an additional E550m in the form of an unsecured convertible bond issue maturing in 2029, which will have a dilutive effect of 3.8% at the time of conversion.

Taking into account the dilution linked to the placement of new shares, estimated at 5.6%, existing shareholders should therefore find themselves diluted by more than 8% following these two financing operations.

In the wake of these announcements, the share fell over 5% on Wednesday morning in Milan, posting the biggest drop in the benchmark MIB index.

However, one of the positive elements of Campari's financing structure concerns the Group's debt, which will not increase excessively after this transforming acquisition, one trader said.


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