(Boursier.com) — In large volumes, Solocal collapses by 24.3% to 0.059 euros while the group should come under the control of the company Ycor. As part of the financial restructuring of the company, Solocal indicated that it had received two offers but supported that of Ycor, “the only proposal, at this stage, likely to ensure its sustainability and which can be implemented with the support of lenders senior”.
Concretely, Ycor’s proposal provides for substantial contributions exclusively in equity, including a maximum contribution of 40 million euros of new money from Ycor via capital increases with or without maintaining the preferential subscription rights of the shareholders; a potential contribution in kind from the company Regicom; the partial repayment, on the effective restructuring date, of part of the existing senior debt with part of the proceeds from the equity contributions; a massive reduction in the nominal amount of the Group’s existing gross debt of around 80% with different amortization or capital conversion methods depending on the nature of the debts reinstalled.
The current shareholders of Solocal Group would be massively diluted since their existing shares would represent less than 1% of the capital.
Solocal will formally consult the bondholders’ general meeting on the implementation of Ycor’s offer. Their agreement will therefore be essential to go further. Oddo BHF recalls that the group initiated discussions with its financial creditors in June 2023. If the offer is finally accepted, Ycor would thus become the majority shareholder of the company which would logically have to undertake a new strategy and reorganization. He will hold 76% of the capital. It is likely that the group will be delisted given the dilution of existing shareholders (ultimately 1% of capital). An OPR would be entirely possible, according to the broker. While waiting for more details on the calendar and the vote of the AGM, the analyst remains ‘neutral’ on the stock.
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