«We have decided to propose to the shareholders’ meeting a 135 million euro capital increase that will allow us to repay the loan that the reference shareholder had granted us by 90 million for the two American acquisitions, while the rest of the capital will serve to strengthen Safilo’s capital structure and to continue to invest in digitalization, owned brands and be ready to look at external opportunities ». Angelo Trocchia, CEO of Safilo, explains the decision to proceed with a recapitalization of the company also following the trend in the first half of the year: “After a positive first quarter, we expect a second quarter of growth in the upper part of the range. single digit on 2019 ».
The capital increase is therefore mainly aimed at repaying the existing “shareholder loan“Of 90 million, in addition to the amount of interest accrued, granted to Safilo in two tranches during 2020 by Multibrands Italy, a company controlled by Hal Holding NV and Safilo’s reference shareholder with 49.84%, to support the conclusion of the acquisitions of Blenders Eyewear and Privé Goods. The repayment of the loan, the company explains, in advance of the deadline at the end of 2026, will allow the group “substantial savings in financial charges for interest expense, now equal to 9% for each year of residual duration of the loan”. As at 30 June 2021, the principal amount of the loan is 96.5 million.
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For its part, Multibrands has undertaken the commitment to subscribe the newly issued shares relating to its share and, subject to agreement on the issue price, to subscribe any unsubscribed shares. “Hal will underwrite the increase in full, which allows us a faster and more efficient process. In the short term, therefore, Hal could increase its stake in Safilo, but will make available on the market the shares that exceed the current stake »explains the CEO.
Safilo must correspond to Multibrands an amount equal to 2% of the risk assumed, calculated on the basis of the actual amount of the increase, net of the countervalue of the shares due and of the new shares that other shareholders undertake to subscribe before the publication of the prospectus. The amount may not in any case exceed 1.6 million.
«The operation will allow Safilo to continue along the development lines it is following. The positive results are due to the good performance of the United States, as well as China and the Middle East. We are seeing the first signs of a recovery, including in Europe, which we hope will become more solid and stronger in the second half of the year ”, underlines Trocchia, who adds:“ We have renewed the heart of our licenses until 2025-2026. We have no other licenses expected to expire. The growth of our proprietary brands, which are performing better than our programs, is also important. In 2021, we will already abundantly compensate the exit of the large LVMH licenses between owned brands and acquired brands »explains the CEO.